Fashion resale marketplace ThredUp has sold its European business, Remix, to focus solely on its domestic U.S. operations. This move, part of a strategic realignment, sees Remix’s management team, led by Florin Filote, acquiring the business in a management buyout.
ThredUp entered the European market in 2021 by acquiring Remix, a Bulgaria-based startup operating in central and eastern Europe. However, as its European revenues declined—dropping 18% year-on-year to $13 million in Q2 2024—ThredUp began exploring options to divest. Gross profits from the region also fell by 25% to $3.6 million.
In its latest filing with the Securities and Exchange Commission (SEC), ThredUp disclosed that Filote paid €1 for a 91% stake in a new entity, Remix US Holdings, which will carry on the operations. ThredUp retains a 9% equity stake and issued Remix a €61.6 million ($64.7 million) convertible promissory note. The note, which represents ThredUp’s total investment in Remix since 2021, is repayable by 2034 or upon a liquidity event such as an IPO or acquisition. Additionally, ThredUp invested $2 million to support Remix’s transition as an independent business.
ThredUp has faced challenges since its IPO in 2021, where it was initially valued at $1.3 billion. By October 2024, its market cap had plummeted to $60 million. However, recent Q3 earnings outperformed expectations, boosting its valuation to nearly $200 million. The sale of Remix aligns with ThredUp’s broader efforts to stabilize and strengthen its U.S. marketplace operations.
“This is a mutually beneficial outcome for both ThredUp and Remix,” said ThredUp co-founder and CEO James Reinhart. “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 U.S. business and continue to innovate and evolve our marketplace.”
Featured Image courtesy of Tiffany Hagler-Geard/Bloomberg via Getty Images
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