TLDR:
- Zombie brands are plaguing the DTC world, causing fire sales and quiet closures.
- Many DTC startups are struggling to meet growth expectations and are facing tough decisions about their future.
Zombie brands, like Feat Clothing, are seeing stalled growth and drastic reductions in workforce. The DTC landscape is characterized by struggling competitors, acquisitions with little fanfare, and private equity firms buying distressed brands. These zombie brands are caught between the land of the living and the dead, lacking growth and potential for a profitable exit. Many founders are grappling with the decision of whether to sell, cut costs, or restructure in the hopes of turning around their stagnant companies. The issue has been compounded by challenges in the consumer business sector and a shift in how startups are valued, leading to a rise in zombie brands in 2024.
The article also highlights the struggles of brands like Outdoor Voices and shaky acquisitions that fail to meet expectations. The challenges faced by zombie brands require tough decisions from both founders and investors, as they navigate the uncertain landscape of the DTC world. Ultimately, founders are looking for ways to move on from their struggling brands and find a new chapter that offers a break from the relentless challenges and pressures of building a successful DTC brand.
