ETailz Acquires Ecomom, A Startup With A Rough Past
Ecomom is an eco-friendly e-commerce startup that was acquired by ETailz. Ecomom’s founder Jody Sherman committed suicide on January 27th and two weeks later, Ecomom entered into the Assignment for Benefit of Creditors.
Ecomom ran out of cash after raising $12 million because they offered very deep discounts on their website. There were poor financial decisions made at the company.
ETailz is a competitor to Ecomom that launched in 2008. ETailz will be relaunching Ecomom.com with new management this summer.
Formerly known as GreenCupboards, ETailz worked with Sherwood Partners on the deal. Sherwood was hired to wind down Ecomom, acquire Ecomom’s domain, maintain their social media accounts, and get a hold of $1 million worth of inventory. The acquisition was made entirely in cash.
The deal takes care of the $1 million securitized bank loan and unsecured creditors. Josh Neblett, the CEO of ETailz, said that Ecomom’s headquarters is moving to Spokane, Washington where ETailz is located.
None of Ecomom’s former employees or management team have joined ETailz, but the company is not opposed to hiring them.
ETailz is profitable and last year, they generated $13 million. Revenue is expected to double in 2013. ETailz raised $280,000 in 2008 and has not raised more ever since. ETailz currently has 60 employees.
“While etailz has long admired the vision and mission of ecomom and was saddened by the series of events that led to the close of ecomom, we are pleased to have the opportunity to continue the work conceived and inspired by ecomom’s dedicated founders and employees,” stated ETailz Co-founder and CEO Josh Neblett. “Innovation and long-term success are central to etailz’s strategy. Changing our corporate name to etailz allows us to operate individual businesses, such as GreenCupboards and ecomom, as well as grow our etailz family of brands over time.”This article was written by Amit Chowdhry. You can follow me at @amitchowdhry or on Google+ at +AmitChowdhry