In March 2022, Jared Kushner was summoned to testify in front of the Jan. 6 House committee concerning the Capitol attack that transpired towards the end of his father-in-law’s term as president. Meanwhile, in his personal capacity, Kushner was engaging in business ventures, including one that led him to a niche and subsequently troubled sector of Amazon’s e-commerce realm.

Prior to his testimony in Washington, Kushner and colleagues from his private equity company, Affinity Partners, journeyed by boat from their coastal office in South Florida to convene with a company named Unybrands at its headquarters in nearby Miami, as per sources familiar with the matter, who requested anonymity due to the private nature of the discussions.

Unybrands, established in 2020, was among the numerous players in the booming market of Amazon seller aggregators. Entities in this sphere capitalized on low interest rates and the surge in e-commerce due to the pandemic to collectively amass over $16 billion from prominent entities in Wall Street and Silicon Valley with the objective of acquiring independent sellers on Amazon’s platform.

Some of the consolidation in the market is being driven by lenders seeking to circumvent losses, sources close to several deals disclosed. Jason Somerville, a founding partner at consulting firm GW Partners, which has counseled sellers and aggregators on transactions, echoed this sentiment.

“I see it more as a postpone-the-can kind of merger, where there are common debts or equities consolidated to potentially restructure the debt,” Somerville remarked. “Almost all of these are being executed in distressed circumstances.”

The costs associated with operating on Amazon, spanning advertising and listing charges to shipping and fulfillment, continued to rise, making it challenging for aggregators to efficiently manage the acquired companies. Layoffs ensued, and certain entities divested underperforming brands.

The most notable collapse was seen with Thrasio, previously valued at an estimated $10 billion before declaring bankruptcy in February of this year. Subsequently, the firm lost its CEO and a string of senior executives, as reported earlier.

Unybrands also started exploring potential buyers. In February, the company circulated a presentation to prospective acquirers and investors, as per an individual acquainted with the matter.

Unybrands articulated in an email that the company delved into strategic possibilities as the aggregator market was engulfed in turmoil in 2023. The company and its investors ultimately opted to continue securing funds internally, Unybrands noted.

Unybrands was still striving to expand as of February this year despite the market tumult. The company publicized a fresh funding round – an unspecified sum from undisclosed investors – along with the acquisition of another entity that would introduce six new brands to its portfolio. The investment was also slated to repay $300 million in debt to asset management firm Crayhill Capital Management stemming from a funding round in 2021.

Simultaneously, Unybrands revamped its board. Co-founder and CEO Ulrich Kratz, a former Barclays and Goldman Sachs executive, resigned as a director, along with the company’s other two co-founders, according to filings.