Digitally native specialty retailer Zulily has a new owner.
Qurate Retail Group, which is made up of QVC, HSN, Ballard Designs, Frontgate, Garnet Hill, and Grandin Road, has sold Zulily to Los Angeles-based investment firm Regent for an undisclosed sum.
Zulily, which primarily serves the needs of moms, shifted its focus from flash sales to virtual branded stores, everyday value, and exclusive daily deals in September 2022.
The divestiture aligns with Qurate Retail’s Project Athens transformation strategy, announced in June 2022, to optimize its brand portfolio.Regent is a global investment firm that owns and operates several international consumer brands including Club Monaco, DIM Paris, La Senza, Escada and DiamondBack.
“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.”
“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’s bank credit facility and Qurate Retail repaid Zulily’s outstanding borrowing, which was approximately $80 million as of closing. Based on the terms of the sale agreement, there is potential for Qurate Retail to receive an earnout in future years.
Zulily is headquartered inSeattle, with locations inNevada,Ohio, andChina.