However, the business was still able to grow some through the early part of 2022. Revenue slowed last year from double-digit growth in 2020 as the company struggled to navigate supply-chain constraints, which "resulted in significant inventory out of stock, purchase order delays, and delays in onboarding new customers," according to an investor presentation. With consumers stuck at home, online spending surged, and investors poured into the space. A boom in 20 created more than 600 SPACs hunting for targets.įor Packable, the disappearance of capital represented a dramatic turn for a business that boomed after the onset of the Covid-19 pandemic. Not a single SPAC was issued in July as what remained of the market dried up completely, according to CNBC calculations of SPAC Research data. Vagenas still sits on the company's board, according to his LinkedIn. Myers, a former supply chain executive at Mondelez, was named to Packable's board last year. Packable CEO Andrew Vagenas quietly resigned in April, and was succeeded by Daniel Myers, according to the company's website. In March, Packable called off the deal to take the company public, citing "unfavorable market conditions," just days before Highland Transcend's shareholders were scheduled to meet. in a deal that valued the company at $1.55 billion, the market started to turn and investors lost their appetite for SPACs. After announcing in September plans to merge with a SPAC - Highland Transcend Partners I Corp. Packable's last year has been fraught with turbulence.
Because of Amazon's global reach and massive customer base, many retailers count on the company for the majority, and in some cases the entirety, of their business. Amazon's third-party marketplace has become the centerpiece of its dominant e-commerce business, as it now accounts for more than half of online retail sales. Īs of 2020, Amazon was by far Packable's largest channel, accounting for 80% of sales, according to an investor presentation. In addition to Amazon, the company sells products on marketplaces run by Walmart, eBay and Target. Packable previously secured funding from high-profile investors, including Carlyle Group, Fidelity and Lugard Road Capital. "Given the company has no viable financing alternatives, we are now forced to cease operations, liquidate any remaining collateral, and shut down the business, including the facility you report to." "We diligently pursued internal and external financing options but were ultimately unsuccessful," the company said. Packable failed to secure new financing that would have enabled it to stay in business, the notice said. Packable said in a notice to employees Monday that it was laying off 138 people, or roughly 20% of its staff, with the remaining 372 employees expected to be terminated as "individual winddown responsibilities are completed." The memo was signed by Leanna Bautista, the company's chief people officer. 1 Amazon seller in the U.S., though it now ranks fifth among the site's top sellers nationwide, according to research firm Marketplace Pulse.
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