Seattle-based online retailer Zulily has exited the consumables business, the company on Tuesday confirmed with the Business Journal.
According to an email shared with the Business Journal, Zulily exited the consumables business on July 3. The decision comes after Zulily was sold to Los Angeles-based private equity firm Regent in May for an undisclosed amount and laid off employees for the second time this year in June.
"As we analyzed our different business lines post-acquisition, we made the decision to exit the consumables business," a spokesperson said in an email to the Business Journal. "It was the most recent business added to the Zulily portfolio and turned out to have significantly different economics and customer interest than our core business."
The spokesperson added Zulily had partnered on consumables with Boxed, an e-commerce and shipping company that filed for bankruptcy in April.
Separately, Zulily's Belltown headquarters has popped up on LoopNet as available for lease. The building has 345,777 square feet and 592 covered parking spaces. Zulily's spokesperson didn't immediately say whether the company plans to find a different space or work remotely.
Since its sale to Regent, Zulily has been working to launch its own internal systems and processes, the spokesperson said. Those services were previously provided by Zulily's former parent company, Qurate Retail Inc., which also owns the home shopping networks QVC and HSN.
The transition hasn't gone entirely smoothly. Zulily said the changes have "regrettably led to some delays in different parts of the business" and that "payments to vendors are being prioritized."
Zulily, founded in 2009, went public in 2013 before Qurate, then Liberty Interactive Corp., acquired the company in 2015 for $2.4 billion. Zulily's website offers clothing, electronics, home goods and more, and although the company has long been known for its flash sales, it has recently invested more in becoming an online superstore.
The website still features a grocery and pantry section. The spokesperson didn't say when this portion of the website will shut down.
