🌍 ThredUp’s European Retreat
ThredUp acquired Remix in 2021, expanding into Europe through a $64.7M investment. However, by 2024, revenue from Europe dropped 18% to $13M, while profits fell 25%. ThredUp decided to sell Remix and return its focus to the U.S., signaling a strategic retreat from the European market.
💼 The €1 Deal
Florin Filote, Remix’s general manager, is leading the management buyout, acquiring 91% of Remix US Holdings for just €1. ThredUp retains a 9% stake and issued a $64.7M convertible note for the investment made in Remix, repayable by 2034 or earlier through liquidity events.
📈 Positive Market Momentum
Despite the divestment, ThredUp’s Q3 earnings showed strong U.S. performance, boosting its market cap to $200M. CEO James Reinhart sees the move as a way to sharpen focus, stating, “This transaction allows ThredUp to innovate and grow in our core U.S. market.”
🚀 Future for Remix
Filote aims to guide Remix into its next phase, supported by a $2M cash injection from ThredUp. Though facing €61.6M in debt, the management team is optimistic about leveraging its market expertise for success under local leadership. All eyes are on their strategy for growth.
Is ThredUp's U.S. focus the right call?
