Thrasio Files for Chapter 11 in Bid to Restructure Its Debt (1)

Thrasio Holdings Inc. has filed for Chapter 11 as part of a deal with lenders to provide it with fresh capital and get rid of about $495 million of debt.

The company, a Amazon.com Inc. seller, initiated the process in New Jersey, according to a filing dated Feb. 28. It is seeking to pay employees’ wages, as well as suppliers, while the case is ongoing.

During the pandemic, investors pumped billions of dollars — mostly in debt — into startups rolling up popular brands sold on Amazon.com Inc., betting on the online sales boom. But as people returned to their ...