Top Amazon Seller Succumbs To Economic Meltdown
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- Online seller of health, personal care, and beauty products Pharmapacks' parent Packable has downsized its workforce and braced to liquidate after failing to secure new financing, enabling it to stay in business, CNBC reports.
- Packable dumped its listing plans via a special purpose acquisition company (SPAC) merger worth $1.55 billion as the market cooled.
- It was due to partner with Highland Transcend Partners I Corp. (NYSE:HTPA).
- Last September, Pharmapacks was the top Amazon.com Inc (NASDAQ:AMZN) seller in the U.S. It now ranks fifth among the site's top sellers nationwide, CNBC writes.
- Packable informed terminating 138 employees, or 20% of its staff, with the remaining 372 employees likely to be removed as "individual winddown responsibilities are completed."
- Carlyle Group, Fidelity, and Lugard Road Capital were its backers.
- In addition to Amazon, Pharmapacks sold products on marketplaces run by Walmart Inc (NYSE: WMT), eBay Inc (NASDAQ: EBAY), and Target Corp (NYSE: TGT).
- In related layoff news, senior executives in the Alphabet Inc (NASDAQ: GOOG) (NASDAQ: GOOGL) Google cloud sales department warned against layoffs lest results missed expectations.
- Price Action: AMZN shares traded lower by 0.26% at $133.27 in the premarket on the last check Wednesday.
