A popular lender backed by venture capital firms is struggling financially, sending shock waves through the small clothing and home furnishing companies that count on its financing.
The lender, Ampla, spent years courting small direct-to-consumer brands with low rates and a pitch that it understood their needs.
In recent weeks, its top executives have been searching for a buyer, two people familiar with the firm’s finances said.
Ampla has also tightened or frozen clients’ lines of credit and told many customers to find other lenders, leaving them in the lurch, according to half a dozen former and current clients.
Its troubles appear to be part of a broader reckoning for direct-to-consumer businesses, some of which are no longer growing as rapidly as they once were or are struggling financially.
Persons:
Ampla
Organizations:
Investors
Locations:
New York