Beyond Inc. Sells Majority Stake in Zulily to Proozy Owner for $5 Million

In the fast-paced world of e-commerce, strategic acquisitions and divestitures shape the landscape as companies refine their portfolios for growth and profitability. In a notable move, Beyond Inc., previously known as Overstock, has sold a majority stake in online retailer Zulily to Lyons Trading Company, the parent of off-price e-commerce platform Proozy.com, for $5 million. This deal, which values Zulily at $6.7 million, highlights Beyond’s shift toward focusing on core brands like Bed Bath & Beyond and Overstock, while marking yet another chapter in Zulily’s turbulent ownership history.

The Sale Details: A Strategic Transaction

Beyond Inc. announced on Tuesday that it has offloaded a 75% stake in Zulily to Lyons Trading Company for $5 million, retaining a 25% interest in the brand. This transaction, structured under a definitive agreement, follows closely on the heels of Beyond’s $5 million acquisition of BuyBuy Baby just a month earlier. According to Beyond’s Chief Operating Officer, Alex Thomas, the sale is designed to sharpen the company’s focus on its most promising growth avenues. Financially, Beyond anticipates that the deal will have a negligible impact on its full-year adjusted earnings per share, underscoring its role as a tactical rather than transformative move.

This sale reflects Beyond’s ongoing efforts to optimize its business model within the competitive e-commerce sector. By divesting a majority stake in Zulily—a brand it acquired for $4.5 million about a year ago—Beyond is effectively valuing Zulily at $6.7 million, a step up from its initial investment.

Zulily’s Ownership History: A Rollercoaster Ride

Zulily’s journey through the e-commerce ecosystem has been anything but stable. This latest transaction marks its fourth change of ownership in less than two years, a testament to the brand’s challenges in finding a lasting home. Launched in 2010, Zulily soared to a market capitalization of $7 billion by 2014, catching the eye of QVC Group (now Qurate Retail Group), which acquired it for $2.4 billion in 2015. However, the brand struggled to maintain momentum under Qurate’s ownership.

In May 2023, Qurate sold Zulily to Regent, a Los Angeles-based investment firm, in a deal that included settling $80 million in debt. Despite this fresh start, Zulily’s woes persisted, culminating in significant layoffs and the cessation of operations by late 2023. Beyond Inc. stepped in roughly a year ago, purchasing Zulily’s brand assets and intellectual property for $4.5 million. Now, with Lyons Trading Company taking the reins, Zulily embarks on yet another phase of its complex history.

Beyond’s Strategy: A Push for Profitability

The divestiture of Zulily aligns with Beyond Inc.’s broader mission to achieve profitability—a goal that has driven recent strategic decisions. The company has been vocal about refining its operations, with a clear emphasis on strengthening core brands like Bed Bath & Beyond and Overstock.com. Analysts from Jefferies, led by Jonathan Matuszewski, have praised the move, noting in a Tuesday report, “We view this favorably, as funneling proceeds into core brands should have a higher ROI than an attempt at reincarnating Zulily.”

Beyond’s Principal Executive Officer, Marcus Lemonis, who assumed the role just last week, recently tempered expectations by suggesting that profitability might remain elusive this fiscal year despite positive strides. The sale of Zulily represents a calculated step toward that long-term objective, freeing up resources for more lucrative investments.

Adrianne Lee, Beyond’s President and CFO, elaborated on the company’s direction: “We have made significant progress in improving the performance of Bed Bath & Beyond and Overstock.com through sequential margin improvement, enhanced site experiences, vendor consolidation, and right-sizing our fixed expenses. With the recent acquisition of BuyBuy Baby, we want our team laser-focused on our core brands as we march towards profitability.” This statement underscores Beyond’s commitment to a streamlined, profit-driven portfolio.

Who Are Lyons Trading Company and Proozy?

Lyons Trading Company, headquartered in Minnesota, is the driving force behind Proozy.com, an off-price online retailer founded in 2015. Proozy has carved out a niche in the e-commerce market by offering premium brands at discounted prices, with a product lineup featuring names like Under Armour, Adidas, Reebok, and Oakley. Specializing in apparel, accessories, and footwear, Proozy positions itself as a go-to destination for deal-savvy shoppers.

The acquisition of Zulily’s majority stake represents a bold expansion for Lyons Trading Company, potentially leveraging Zulily’s established brand recognition to bolster its presence in the competitive online retail space. Neither Proozy nor Lyons Trading Company responded immediately to requests for comment, leaving the industry to speculate on their plans for Zulily’s revival.

The Bigger Picture in E-Commerce

This transaction is emblematic of the dynamic nature of e-commerce, where brand acquisitions and strategic sales are tools for companies to adapt and thrive. For Beyond Inc., shedding Zulily allows a sharper focus on high-potential assets, while Lyons Trading Company gains an opportunity to revitalize a once-prominent name in online retail. As Zulily transitions to its fourth owner in two years, its story remains a compelling case study in the challenges and opportunities of the digital marketplace.

From an SEO perspective, this deal taps into trending search terms like “Zulily sale,” “Beyond Inc. acquisitions,” “Lyons Trading Company,” and “e-commerce brand ownership.” By shedding light on the strategic moves of these players, this article aims to inform readers while capturing the attention of those tracking the latest developments in online retail.