Qurate Retail Sells Zulily
Qurate Retail, Inc., parent company of QVC and HSN, has sold its Zulily e-commerce division to Los Angeles-based investment firm Regent.
The divestiture of Zulily aligns with Qurate’s Project Athens transformation strategy to optimize the company’s brand portfolio, which was first discussed in June of 2022, company officials said.
“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.
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 is known for driving transformative change by strategically repositioning businesses and pursuing opportunities that can accelerate growth and innovation. Regent portfolio companies employ more than 20,000 people globally.
“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.
“We are in the midst of a turnaround at Qurate Retail," said Rawlinson. “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.”