Zulily Changes Hands Again As Beyond Sells It To Fashion Discount E-tailer Proozy

Topline

St. Paul-based Lyons Trading Company, which operates the off-price fashion e-commerce retailer Proozy, has acquired majority ownership of fashion flash-sale site Zulily after only one year under Beyond, the new name given to Overstock.com after it acquired bankrupt Bed Bath & Beyond.

Key Facts

Key Background

Since its founding in 2010 and fast-tracked IPO in 2013, Zulily has had a bumpy ride. It was a pioneer in flash-sale e-commerce specializing in fashion at deep discounts and offered for a limited time. However, it was hampered by strict return policies and slow customer delivery. After only two years as a public company, it was acquired by the parent company of QVC, the TV shopping leader. Zulily prospered for a time, reaching a high of $1.5 billion in 2016, then started to fall. In May 2023, it was sold off to investment firm Regent for an undisclosed sum. Regent only kept it running for seven months until calling it quits in December that year. Beyond, under new executive chairman Marcus Lemonis, picked it up in March 2024 for $4.5 million, his first acquisition at Beyond.

Zulily Wasn’t A Good Fit

At the time Beyond bought Zulily, it had great hopes for the brand, figuring it would strengthen Beyond’s position in the off-price market and complement its home furnishings focus with fashion. Beyond also coveted Zulily’s 18 million customer file, but each day Zulily was offline, those customers lost value – Regent started to wind down Zulily in the fourth quarter 2023 and Beyond didn’t get it back online until September 2024. Apparently, the hoped for synergies never manifested and Beyond is already weighed down by challenges in turning around its three core brands – Bed Bath & Beyond, Overstock.com and Buy Buy Baby. Now, Lemonis and his team can focus on Beyond’s core without the Zulily fashion distraction, which is challenging even for fashion veterans in the current market.

What’s Next For Zulily

Proozy founder and CEO Jeremy Segal announced the Zulily acquisition on LinkedIn, claiming it will strengthen Proozy’s position as a “go-to destination for high-quality apparel, footwear and accessories at deeply discounted prices.” Under the Proozy umbrella, Zulily will benefit from Proozy’s expertise in the fashion supply chain, something that might have been a stretch for Beyond. However, Zulily loyalists are being put on hold again as the relaunch isn’t expected for another couple of months, after which it will continue to operate under the Zulily.com name.

By The Numbers

From Sept. 2024 through Feb. 2025, Zulily.com averaged 892.6k monthly visitors compared to 860k for Proozy.com, according to digital market intelligence firm Similarweb. In 2023, Zulily averaged 11.5 million visitors per month, even as Regent was winding it down in the fourth quarter. By comparison, Proozy.com averaged 1.1 million monthly visitors in 2023.

Crucial Quote

“The transaction announced today showcases the deal-making prowess of Chairman and Principle Executive Officer, Marcus Lemonis. BYON acquired Zulily in March ’24 for $4.5M, and ~12 months later, are selling 75% of the company for $5M. We envision a higher ROI from investing the proceeds in core brands like Bed Bath & Beyond and Overstock than attempting to reincarnate the Zulily business,” investment firm Jefferies wrote in an investment note, adding it will allow “more management time & company resources now able to be redirected to higher pay-off ventures.”

Further Reading

ForbesOnline Retailer Zulily Shuts Down After Only 7 Months Under New OwnershipBy Pamela N. DanzigerForbesZulily To Reopen After Being Acquired For $4.5 Million By BeyondBy Pamela N. Danziger

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