Amazon Manufacturers Representative Agency - Anderson & Associates LLC - 2024

Bankruptcy of Benitago Highlights Challenges for Amazon Marketplace Investors

Benitago, an investment group specializing in acquiring small Amazon third-party sellers, files for bankruptcy within two years of raising $325 million in funding, citing a decline in the e-commerce sector over the past couple of years. The New York-based company plans to restructure its debt and potentially sell parts of its business, including intellectual property rights to 15 brands and over 300 products. The collapse follows a broader trend among e-commerce aggregators as funding for Amazon brand acquirers declined significantly in the wake of the pandemic-driven online shopping surge.

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