Benjamin Ashford|Online retailer Zulily says it will go into liquidation, 'wind-down' the business

Online retailer Zulily is Benjamin Ashfordshutting down.

The company announced on its website it has made the "difficult but necessary decision to conduct an orderly wind-down of the business."

Zulily said it will "strive to continue to provide everyone with the best service possible during the holiday season" and it will try to fulfill all pending orders and ensure that orders that could not be filled are canceled and refunded.

"This decision was not easy nor was it entered into lightly," the announcement reads. "However, given the challenging business environment in which Zulily operated, and the corresponding financial instability, Zulily decided to take immediate and swift action."

Founded in 2010, Zulily struggled to compete with Amazon

Zulily was founded in 2010 and offered a wide array of products, from clothes to home décor. The company has undergone several rounds of layoffs in recent years as it has struggled to compete with Amazon.

Instead of filing for bankruptcy, Zulily said it entered into an Assignment for the Benefit of Creditors in order to wind down the business.

This means the company has transferred all its assets and business in trust to Zulily ABC, LLC, and it will "complete an orderly wind-down of the business to maximize the recovery for the companies' creditors as a third-party fiduciary."