ThredUp's European Exit: Why the Fashion Giant Sold 91% for Just €1!

ThredUp's European Exit: Why the Fashion Giant Sold 91% for Just €1!

Guess who's cashing out of Europe? Yes, it's the fashion-forward marketplace you've all been buzzing about! ThredUp is kicking its European dreams to the curb and tightening the seams on its U.S. empire! They've handed over the reins of their European biz to none other than their go-getter GM, Florin Filote, who’s leading a flashy management buyout.

Remember when ThredUp made waves in 2021 by scooping up the Bulgarian gem Remix? It was all part of their daring European expansion. Fast forward, and now Florin Filote is swooping in for a power move, taking control of the very unit he was meant to supercharge.

Founded in 2009, ThredUp rode the wave of pre-loved fashion glory, raising over $300 million and swaggering into a 2021 IPO. But not everything was haute couture on Wall Street, as their market cap took a nosedive from a dazzling $1.3 billion to a mere $60 million recently!

Amidst fading Euro dreams, ThredUp's Q2 2024 earnings unfolded a plan to exclusively woo the U.S. market. European revenue shrank by 18% to $13 million, and profits slumped 25%. Ouch! But with Q3 seeing stocks skyrocket to nearly $200 million, ThredUp's got its mojo back—putting that U.S. strategy in high gear!

SEC filings reveal the juicy details: Filote bagged 91% of the stock in "Remix US Holdings" for just €1. Yes, ONE euro! But hold your designer shoes, there’s a catch! ThredUp’s still got a finger in the pie with a 9% stake and a hefty €61.6 million convertible promissory note to remember them by.

This deal is like a perfect pair of boots, fitted just right for both sides. CEO James Reinhart claims it's mutually fab, allowing ThredUp to shine brighter in the U.S. market while handing Remix the freedom to thrive.

Intrigued? Check out the full details here. Dive into the world of pre-loved fashion and corporate power play!

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