Benitago — a company that creates and acquires brands for growth on Amazon — filed for Chapter 11 bankruptcy Wednesday, according to court filings with the Southern District of New York.
The company experienced “rapid growth” during the early stages of the COVID-19 pandemic. However, as consumer preferences shifted later on, Benitago experienced a “rapid and dramatic reversal of fortune due to macroeconomic forces” causing e-commerce growth to stagnate, according to a Thursday declaration filing from CEO and co-founder Santiago Nestares Lampo.
Third-party brands Benitago acquired at the height of the pandemic using certain loans have “failed to perform at a level consistent with the valuations they were purchased at.” Filing for bankruptcy, the company hopes to right-size its business for the current market, potentially sell parts of its business and refocus on Organic brands (in-house developed brands).
Source: Retail Dive
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