Thrasio has released a press statement as its emerged from bankruptcy.

* This same company raised over 3 billion.

* The company now says they have a focus on profitability! (Rick nods)

* The company is focused on products with loyal customers, and a potential for expansion. (Rick rubs chin)

😜

Err... what were they doing between when they were founded in 2018 until today? Wait, don't answer that... The real answer is "Other People's Money" = OPM.

* The company has been recapitalized and has now raised an additional $90M. New OPM.

* The new CEO is very excited, but she has run Brand Operations since the beginning. I guess throwing her former bosses under the bus? (did I mention the former new CEO Greg Greeley is resigning).

* Greg Greeley the former CEO only had the top job for 2 years. Any idea what his press release said: "I'm incredibly excited to blah blah blah.."

My advice?

Let's dial down the excitement. It's not clear to me why Thrasio needs to acquire. The vast majority of aggregators who buy brands suffer from what is called "adverse selection", the vast majority of the time the brand selling is not worth continuing. Walmart found this same thing after Marc Lore convinced Walmart to acquire a bunch of formerly "cool" but ultimately terrible D2C brands.

I ask a simple question: why can't they just build whatever brands they want?

In 99% of the cases, you shouldn't buy. If you are betting on Thrasio, you are betting on their ability to find that needle in the haystack. The less than 1% opportunity. Do you think they have the discipline to say no over 99 times (in reality it may be more like 999 times)?

Call me crazy, but even with new OPM and similar leadership, I am taking the under. Either you have the DNA or you do not.