Thrasio, a consumer goods company working on omnichannel commerce and an aggregator of third-party Amazon sellers, is pushing off its special-purpose acquisition company (SPAC) merger plans as the company fights to overcome changes on its leadership team, according to a CNBC report on Friday (Oct. 8).
There are also “complications with its financial audits,” people with knowledge of the matter told CNBC. The SPAC plan was scuttled during the summer, although the company will still explore that option, as well as a more traditional initial public offering (IPO).
Meanwhile, Chief Financial Officer Bill Wafford left Thrasio in July, just three months after joining the company from JCPenney. The company appointed Brian Cooper, chairman of marketing company Networx, as interim CFO. And last month, Co-founder Josh Silberstein resigned as co-CEO, leaving fellow Co-founder Carlos Cashman to serve as the CEO.
Because Thrasio controls more than 200 third-party Amazon sellers, the auditing process of its balance sheet was more complicated than for a typical eCommerce company, according to the CNBC report.
Thrasio President Daniel Boockvar told CNBC on Friday that the company won’t pursue a SPAC deal, after a Bloomberg report in June said Thrasio was in talks with former Citigroup executive Michael Klein to go public through a merger at a valuation of $10 billion or more.
“Ultimately, our leadership team and our board looked at the market, which is no surprise, and decided that going public via SPAC is not the right choice at this time,” Boockvar told CNBC. “We’re growing our business amazingly well privately, and that’s exactly what we’re going to continue to do. All options are available to us.”
Related: Thrasio Buys SafeRest, Wise Owl Outfitters and Danjor Linens
Last month, Thrasio announced it was buying mattress protector company SafeRest, camping equipment company Wise Owl Outfitters and home bedding company Danjor Linens. The three new brands are expected to add more than $90 million in sales within their first year.
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