Minnetonka e-commerce firm to shut down, resulting in 122 layoffs
A Minnetonka e-commerce company is closing down, with more than 120 workers set to be laid off.
Digital River Inc. informed the Minnesota Department of Employment and Economic Development this week that it will permanently close its headquarters at 10380 Bren Rd. W. by Mar. 28.
The closure will result in 122 employees losing their jobs. This includes a number of remote workers who reported to the office.
The closure comes just over ten years after the company was acquired by a New York-based private equity firm for a sum of $840 million.
Digital River offered online payment processing solutions for companies across the globe, as well as data insight and market intelligence services.
It was founded by Joel Ronning in 1994 before going public in 1998. Ronning stepped down in 2012, with the company taken private again less than two years later.
According to the Twin Cities Business Magazine, Digital River CEO Barry Kasoff told employees that "unforeseen factors have intensified the strain on our financial resources.
"The rapid contraction of key customers, combined with the headwinds presented by new deals with shorter payment terms and U.S. trade policies that impacted one of our largest customers, have exacerbated the pressure on our available capital," he added.
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