When a retailer shuts down, it usually follows a somewhat organized process.
For brick-and-mortar chains, sometimes individual locations will shut down abruptly while the overall chain keeps operating.
For consumers it's often hard to know whether the closing of a single location signals that the company is in trouble or simply reflects an expiring lease or other reason a store might close.
When that happens, things like returns become harder for consumers who lose their local store, but they're still doable.
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Even when a company formally files for bankruptcy, an abrupt shutdown rarely happens.
Bed Bath & Beyond, for example, filled Chapter 11 bankruptcy, which turned into a Chapter 7 liquidation. As that process developed, a judge had to approve the process, including the chain setting a last day for returns, the final day customers could redeem gift cards, and when the stores would shut down.
It's organized chaos, as the chain literally puts everything — including its fixtures and back-office equipment — up for sale. You can often buy everything from mannequins to old computers at these sales, but there's a clear process.
That's not what has happened with online retailer Zulily. The online clothing retailer abruptly laid off around 300 workers on Dec. 7 and posted about a final sale where "all things must go" on its website.
Image source: Shutterstock
Zulily shuts down for 'maintenance'
Zulily has not commented on its future and made no public comment aside from declaring a "final sale" on its website.
It clearly appeared the company was heading for a bankruptcy filing or simply having its operations wound down by private-equity owner Regent.
It was possible the owner would try to sell the company's assets to another owner willing to relaunch the brand or operate something else at its well-known URL.
If that process was in the works, it took a dark turn on Dec. 18 as the website abruptly disappeared, replaced by a sign declaring that the website was "down for maintenance."
It's not a professional-looking "We are down for maintenance." Instead, it looks like an automated error message meant for internal, not public, purposes.
Zulily customers have reason to be concerned
The Zulily customer-service phone line now goes to an automated message directing people to send emails.
"Thank you for calling Zulily customer service. We are unable to service your call. Please email us using service@zulily.com for assistance,” RetailDive first reported.
The company's Facebook page remains operational, although it has not been updated since a post selling boots on Dec. 15. Customers have taken to commenting on that post, wondering whether they will receive their orders.
"I knew they were going out of business so ordered a few things this weekend. I hope I actually get my stuff," Jenny Hille Raine posted.
"I seriously doubt you get any of the things you ordered. I ordered a month ago and still haven't received my item and now you aren't even able to look at your account the website is closed," Serenely Clean responded.
Some people also posted that their tracking numbers no longer work, so they cannot follow their orders online.
Zulily has not returned TheStreet's requests for comment. The company's owner has not filed any formal bankruptcy documents but did file the required layoff notices when it let workers go in multiple states. Rounds of layoffs began in March.
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