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Qurate Announces Sale of Zulily

... to simplify its business and improve liquidity.

 

ENGLEWOOD, Colo.--(BUSINESS WIRE)-- Qurate Retail, Inc. (“Qurate Retail”) (Nasdaq: QRTEA, QRTEB, QRTEP) today announced that Regent (“Regent”), a Los Angeles-based investment firm with proven expertise in the retail and apparel sectors, has acquired Zulily, the online retailer delivering a fun shopping experience helping moms discover exclusive daily deals, brand names and on-trend styles, and everyday value on clothing, footwear, homeware essentials and more. Zulily was a wholly owned subsidiary of Qurate Retail, the largest player in video commerce through its QVC and HSN businesses and the owner of Cornerstone Brands. The divestiture aligns with Qurate Retail’s Project Athens transformation strategy articulated in June 2022 to optimize its brand portfolio.

 

“Zulily serves an important role for moms by offering a fun shopping experience, with brand names and special finds at incredible prices. We are confident Regent is the right partner for Zulily to continue serving its customers, while benefiting from Regent’s depth of operational and strategic expertise in the retail and apparel sectors,” said David Rawlinson, President & CEO of Qurate Retail. “We are in the midst of a turnaround at Qurate Retail. This divestiture will allow our management team to better focus on our core video commerce assets, QVC and HSN, and the Cornerstone Brands, while preserving liquidity to further strengthen our balance sheet. I would like to thank Terry Boyle and the entire Zulily team for their continued hard work and commitment amidst a challenging retail environment.”

 

Regent is a global investment firm that owns and operates several international consumer brands including Club Monaco, DIM Paris, La Senza, Escada and DiamondBack. Regent focuses on driving transformative change by strategically repositioning businesses and pursuing opportunities that can accelerate growth and innovation. Regent portfolio companies employ over 20,000 people around the world. Since its inception, Regent has successfully acquired businesses from leading Fortune 500 and large-cap companies around the globe, with 30+ businesses acquired since 2015. Their portfolio includes companies in retail, media, technology and industrial sectors.

 

“We are excited to partner with the Zulily team to help the company return to its entrepreneurial roots as an independent business,” said Michael Reinstein, Chairman of Regent. “Zulily has been a trailblazer in using technology to create a compelling online customer experience. Their revolutionary logistics and fulfillment network has also set a new industry standard, and we are excited to leverage its immense potential to grow the Zulily business in new markets.”

 

In connection with the transaction, Zulily will no longer be a co-borrower in QVC, Inc.’s bank credit facility and Qurate Retail repaid Zulily’s outstanding borrowing, which was approximately $80 million as of closing. QVC, Inc.’s leverage as defined in its credit agreement as of March 31, 2023, assuming the Zulily divestiture had occurred prior to such date, would have been reduced to 2.3x. Based on the terms of the sale agreement, there is potential for Qurate Retail to receive an earnout in future years.

 

 

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Re: Qurate Announces Sale of Zulily

[ Edited ]

"moms"???   Adds a folksy touch to an important press release.

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Re: Qurate Announces Sale of Zulily

I guess they'll be nothing for dads and they better just stay away.

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Re: Qurate Announces Sale of Zulily

@PickyPicky3 and @Kachina624 

 

When Zulily first started, I think about 10 years ago, the commercial they had targeted "moms". A lot, if not most, of their merchandise was geared towards kids and moms. Lots of children's clothing, baby items, cribs, strollers, maternity clothes, etc. I think their demographics were geared towards the 20 and 30 year olds. Maybe 40 too?

 

With the announcement stating "moms" perhaps they are going back to their old ways. In my opinion, it was a much better place to shop. They had unique items and good deals. Not everything was for kids and moms, just most. Of course, back then they didn't charge tax and shipping started at about $2.50. 

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Re: Qurate Announces Sale of Zulily

[ Edited ]

Before Qurate bought them, Zulily was going great guns.  I believe they increased sales 17% their last year.  Then along came Qurate and it's been downhill ever since with huge loses. 

 

They seemed to have lost their best vendors.  I got so many nice things for the home, patio and yard.  My favorite lamp came from Zulily, not to mention 50+ pairs of shoes.  Now I rarely buy anything.

New Mexico☀️Land Of Enchantment
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Re: Qurate Announces Sale of Zulily

@Kachina624  My last and final order from Zulily took over a month to get here and I don't even live in east Egypt! 

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Re: Qurate Announces Sale of Zulily

@jackiejenny  Slow shipping was to be expected at Zulily due to the way they operated.  They always gave a good estimate of the shipping time. It was part of the charm of the "Zulily experience ".

 

I once waited over 6 weeks for some blouses from China.  The tracking was like a geography lesson.

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Re: Qurate Announces Sale of Zulily

I love Zulily!!!!! Part of my morning routine is to look at the day's offerings after I get the news out of the way. They have the best prices of JAMBU shoes and their prices are better than QVC and HSN. 

 

I also buy my granddaughter's clothing from great companies like Carter's and striderite. I have bought sandals for my self, pajamas, sundresses, purses, loungewear and dozens of other items. My living room drapes were bought from them as well. 

 

When you click on an item it says to the right side how long it will take to ship so I've never had a problem with some items having a four week window.

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Re: Qurate Announces Sale of Zulily

[ Edited ]

@Kachina624 wrote:

@jackiejenny  Slow shipping was to be expected at Zulily due to the way they operated.  They always gave a good estimate of the shipping time. It was part of the charm of the "Zulily experience ".

 

I once waited over 6 weeks for some blouses from China.  The tracking was like a geography lesson.


@Kachina624    I have purchased genuine hand dyed  "tie-dye" pieces  (NOT printed fabric) from Zulily and have waited an age-and-a-day for delivery.    It was really worth the wait!!!     di

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Re: Qurate Announces Sale of Zulily

It will be very interesting to see what the new owners, known for business turnarounds, can do with Zulily.

 

I still look everyday at the new offerings,  but in recent months the focus on been on QVC clearance sales.

 

I still purchase on occasion,  but prior to Qurate the offerings were more interesting and varied.

 

I wonder if under the Sales Agreement Zulily will still carry the QVC brands.