One of Amazon’s top sellers has filed for bankruptcy despite annual sales of over $500 million.
Pharmapacks has now gone bust after declaring itself unprofitable and failing to secure additional funding, reports Marketplace Pulse.
The company was a reseller which sold health, personal care and beauty products.
It spent nearly a decade at the top of Amazon’s Top Sellers list.
It was also the biggest seller on the Walmart marketplace and sold in other smaller marketplaces.
Marketplace Pulse says the company was not profitable.
Financials released in September last year show it had a 45 percent margin, but its spending wiped that out.
In 2021, it was estimated it had a $112 million loss on $452 million in sales in 2021.
It had hoped to become profitable by 2024 by increasing its sales by 192 percent, but only increasing its expenses by 85 percent.
But that plan failed and the firm filed for bankruptcy on Sunday, August 28.
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A statement from the company to CNBC said: “We diligently pursued internal and external financing options but were ultimately unsuccessful.
“Given the company has no viable financing alternatives, we are now forced to cease operations, liquidate any remaining collateral, and shut down the business, including the facility you report to.”