ThredUp divests European business to focus on core US operations

Posted by Admin December 4, 2024 Bussiness

ThredUp is an online resale platform for apparel, shoes and accessories. Credit: Viewimage/Shutterstock.

Online resale platform Thredup has finalised the sale of its European operations, Remix, through a management buyout overseen by Remix’s general manager, Florin Filote.

The completion of the sale coincided with the signing of a binding agreement.

ThredUp will maintain a minority stake in Remix, which also received a $2m cash infusion from ThredUp before the transaction was completed to support its ongoing fundraising efforts.

ThredUp co-founder and CEO James Reinhart said: “This is a mutually beneficial outcome for both ThredUp and Remix. We are confident that Remix will thrive under Florin Filote’s leadership and the team’s expertise. This transaction will allow ThredUp to focus on our core US business and continue to innovate and evolve our marketplace.”

ThredUp had announced during its second-quarter earnings report for 2024 that it was planning to withdraw from the European market and was exploring strategic options for Remix.

In 2023, Remix reported net revenues of $63.5m with a gross margin of 24.2%.

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The separation allows both companies to hone their focus on their primary markets and leverage their unique strengths.

ThredUp will disclose further details of the transaction, including unaudited pro forma financials, in an upcoming filing with the US Securities and Exchange Commission.

Florin Filote expressed enthusiasm for leading Remix as an independent entity, emphasising the company’s robust foundation and commitment to delivering a superior resale experience in Europe.

Remix general manager Florin Filote said: “We are excited to embark on this new chapter as an independent company. We have a strong foundation and a talented team, and we are committed to continuing to provide our customers with a best-in-class resale experience. We believe that this transaction will enable us to accelerate our growth and expand our presence in the European market.”

ThredUp is one of the largest online resale platforms for apparel, shoes and accessories. It has processed more than 200 million second-hand items from 60,000 brands across 100 different categories.