After three years of ownership, secondhand clothing marketplace ThredUp has sold Remix, its European reCommerce platform.
The company announced the divestiture Tuesday (Dec. 3), the results of a management buyout led by Florin Filote, general manager of Remix. The deal sees ThredUp retaining a minority interest in Remix, with the company also giving Remix a final investment of $2 million.
“This is a mutually beneficial outcome for both ThredUp and Remix,” ThredUp Co-Founder and CEO James Reinhart said in a news release. “We are confident that Remix will thrive under Florin Filote’s leadership and the team’s expertise. This transaction will allow ThredUp to focus on our core U.S. business and continue to innovate and evolve our marketplace.”
“We are excited to embark on this new chapter as an independent company,” added Filote. “We have a strong foundation and a talented team, and we are committed to continuing to provide our customers with a best-in-class resale experience. We believe that this transaction will enable us to accelerate our growth and expand our presence in the European market.”
ThredUp acquired Remix in July 2021, a $28.5 million deal designed to give it a foothold in the then-emerging European resale market, while providing the Bulgaria-based Remix with the resources to scale faster than it would on its own.
In other ThredUP news, PYMNTS wrote last month about the company’s use of artificial intelligence (AI) to help customers match unique items with potential buyers by analyzing photos and descriptions. It’s something that highlights a rising tension between the efficiency-focused eCommerce space and the treasure-hunt ethos that has long been a part of thrift shopping.
“I believe that AI will help match consumers with the items they are looking for and, because of this, can help small business owners compete in an increasingly competitive resale marketplace,” Aaliyah Kissick, owner of thrift shop AK Boutique, told PYMNTS. “At the same time, AI can facilitate a form of novelty online by learning consumer behavior and giving intermittent reinforcement, much in the same way social media algorithms do.”
Meanwhile, ThredUp recently hired Amazon’s former luxury resale head as its new social commerce director.
Danielle Vermeer is set to take on the newly created role of head of social commerce beginning in January of next year, PYMNTS wrote last month. In addition to her time with Amazon, she co-founded and led Teleport, a social commerce app that allows consumers to purchase and sell secondhand fashion from a “TikTok-like video feed.”
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