SellerX, a buyer of successful marketplace sellers, can no longer meet its financial obligations. The Berlin-based company, only four years old, will be auctioned in the German capital on September 17. This decision was made by financier BlackRock.
SellerX is one of the most well-known marketplace aggregators, acquiring successful traders and brands on marketplaces and aiming to make them more efficient. Founded in August 2020, SellerX aimed to become a European counterpart to the American Thrasio.
Investment in aggregators dried up
These ecommerce aggregators, including Berlin Brands Group and Razor Group form Germany and Dwarfs from the Netherlands, saw significant growth during the pandemic. However, investment has since dried up. Pioneer Thrasio, that also targeted European ecommerce companies, narrowly avoided bankruptcy.
BlackRock lent half a billion euros
BlackRock reportedly lent a total of half a billion euros to SellerX. Over the years, SellerX acquired competing aggregators like KW Commerce and American industry peer Elevate Brands. However, the borrowers have failed to meet their repayment obligations, according to Bloomberg. Founders Philipp Triebel and Malte Horeyseck left the company this summer.
To recover some of the money and gain control, BlackRock has organized an auction in a Berlin hotel in two weeks. Bloomberg describes this as an “unusually aggressive step” for the world’s largest asset manager.
‘An unusually aggressive step.’
BlackRock has brought attention to the auction, supported by investment firm L. Catterton, through an advertisement in the Börsen-Zeitung. Other creditors, such as loan manager Victory Park Capital, are also expected to benefit.
Breaking the deadlock
In Germany, creditors can organize auctions to take control of companies when negotiations between companies, investors, and banks reach a deadlock. GLAS, a debt management service provider, will organize the SellerX auction.
