While many pure-play etailers are trouncing traditional retail, JackThreads is unraveling.
The online men’s wear company laid off the majority of its staff, former employees told Sourcing Journal.
JackThreads did not respond to inquiries on the matter. But it has been confirmed that it is looking to sell the company.
Formerly a part of Thrillist, JackThreads was launched in 2008 in Columbus, Ohio, as a flash sale site, offering deals on emerging labels. In 2015, JackThreads was spun off, and the two separate entities raised $54 million in funding, with funding for the ecommerce site led by Oak Investment Partners and SBNY.
The etailer then relaunched, pivoting from flash sales, and adding private label garments to the mix. About six months later, it launched TryOuts, which allowed customers to order products and pay only once they’d opted to keep them. But even catering to males’ notoriously commitment phobic ways doesn’t seem to have helped.
The question now is whether or not JackThreads has the brand equity and hefty consumer list that have made other sputtering companies like NastyGal and American Apparel appealing to investors.