Big retail brand makes a post-bankruptcy comeback
Going out of business and undergoing liquidation no longer holds the finality it once did. Today, a brand with any semblance of name recognition can often find a second chance, leading to the rise of “zombie brands” that capitalize on the legacy of their predecessors.
Brand Revivals and the Zombie Phenomenon
Take Sharper Image, for example. While its trendy retail stores have shuttered, the brand has been revived, now offering a range of lower-end gadgets and office novelties that leverage the recognition of the once-popular company. This phenomenon resembles horror movie villains like Michael Myers—brands that simply won’t stay dead.
Similarly, Toys R Us has undergone multiple reincarnations since declaring bankruptcy and liquidating its stores. Although it no longer provides the nostalgic shopping experience fans remember, the brand lives on in various forms, including a toy section within Macy’s. While it’s not the same as the original experience, it carries more weight than a generic toy aisle.
Even Bed Bath & Beyond, which recently closed its doors, saw its intellectual property swiftly snatched up by former Overstock.com executives. Although the company had no immediate plans to revive the retail presence, it later rebranded itself as Beyond and has since revisited the idea of launching new ventures, including the revival of another well-known brand.
Zulily’s Unexpected Liquidation and Comeback
In a similar twist, Zulily, a once-prominent online retailer targeting moms and children, never actually filed for bankruptcy. Instead, it laid off most of its staff and entered into an agreement to liquidate its assets without court involvement. Douglas Wilson Companies announced that on December 22, 2023, Zulily and its parent company initiated an Assignment for the Benefit of Creditors (ABC) to facilitate the orderly wind-down of the business.
This decision left many customers frustrated, especially those waiting for paid orders that had not yet shipped. While shipped orders were fulfilled as planned, the company informed customers that it could not issue refunds and that they would need to file claims for any outstanding amounts owed.
Beyond’s Bold Plans for Zulily’s Revival
Despite these challenges, Beyond has emerged from its own financial struggles, purchasing the Zulily name and planning to bring it back to life. The company has seen its operating losses grow from $4 million to $47 million compared to the previous year but remains optimistic about its plans for the brand’s revival.
In a recent earnings call, Beyond Executive Chairman Marcus Lemonis announced that they had completed the architecture and proof of concept for Zulily. The company has signed over 100 legacy vendors and is in the process of onboarding another 100 suppliers, with the site currently undergoing internal testing. They are targeting a relaunch date of September 10.
Beyond’s CEO, David Nielsen, elaborated on the strategy during the call, stating, “We hired a team of experienced merchants who were with legacy Zulily, know the Zulily customers, and have established working relationships with important brand partners. Our progress has been significant, and we’re adding both legacy and new vendors to the mix.”
As part of its revitalization strategy, Zulily plans to offer exciting flash sales alongside a selection of must-have basics, requiring a member login to enhance profitability.
In this evolving landscape, the survival of brands like Zulily showcases how former market leaders can find new life, even after significant setbacks. As these zombie brands rise from the ashes, they remind us that in the world of business, resurrection is always a possibility.
