Brandless is the first startup backed by SoftBank Vision Fund to fail.
The direct-to-consumer retailer launched in 2017 and quickly made waves selling beauty products, organic snacks and everyday essentials at $3 apiece.Online retailer Brandless will lay off 70 people, or almost 90% of its staff, as it prepares to shut down business operations, the company confirmed to CNBC. The company is only retaining 10 employees to complete remaining orders., SoFi and WeWork-parent The We Company, among others.
However, the company's business model was "unsustainable" in the "fiercely competitive" direct-to-consumer market, the Brandless board said in a joint statement to CNBC. "Brandless set a new standard in the wellness and sustainable products industry, and while we weren't able to compete competitively in today's DTC market, I'm confident the next great brands of tomorrow will be built from this experience," said Brandless CEO Evan Price in a statement to CNBC.
Other ventures supported by SoftBank Vision Fund have also faced difficulties. In January, robotic pizza business Zume
South Africa Latest News, South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Brandless is shutting down and refusing new orders - Business Insider'I'm proud of what we created at Brandless and the hard work and dedication of everyone on the team,' Brandless CEO Evan Price told Business Insider.
Read more »
SoftBank-backed taxi app Ola launches in London, looking to topple Uber as No. 1 playerOla rolls out its taxi-booking service in London on Monday, as Uber faces the threat of being banned.
Read more »
Layoffs result as consumers think twice about DNA testingFirst 23andMe laid off 14% of its staff. Now comes word industry leader Ancestry is similarly giving about a hundred workers the heave-ho.
Read more »
Brandon Maxwell Turned Simple Into Sexy for Fall 2020By stripping things back, the designer was able to show off his sharp tailoring skills.
Read more »
SoftBank set for sharp quarterly profit drop amid pressure from ElliottJapan's SoftBank Group is expected to post a slide in profits for ...
Read more »
SoftBank-owned Arm to launch new AI chip for small devicesArm Ltd, a semiconductor technology firm owned by SoftBank Group, unveiled a chi...
Read more »