Choxi

About Choxi

Choxi.com Inc. was an online retailer specializing in discounted brand-name and non-branded merchandise. The company originated as NoMoreRack.com, which was founded in 2010. In April 2015, NoMoreRack rebranded to Choxi, a name derived from "chock full" and "choice," to reflect its extensive product selection and to move past a trademark dispute with Nordstrom over the term "Rack". The company was co-founded by CEO Deepak Agarwal and Chief Merchandising Officer Melina Ash.

The business operated on a flash-sale model, offering a wide array of products including apparel, home goods, electronics, and jewelry at significant discounts. Choxi worked directly with manufacturers to source surplus goods, using algorithms to feature best-selling items prominently on its e-commerce site. The target market was primarily financially conscious consumers, characterized in a corporate presentation as a young mother in her thirties who seeks out the best deals. At its peak, the company was reported as the second-fastest-growing web-only retailer in 2013 and 2014.

Despite its rapid top-line revenue growth, Choxi consistently reported net losses, ranging from $7.4 million to $21 million annually. Court filings from its subsequent bankruptcy proceedings cited a management focus on gross revenue with less regard for underlying profitability. In November 2016, following numerous customer service complaints and reports of financial instability, Choxi's website went offline, and the company filed for Chapter 11 bankruptcy in December 2016. The filing revealed $1.5 million in assets against $33.9 million in liabilities, compounded by allegations of fraudulent fund transfers by its largest investor.

In June 2017, the assets of Choxi, including its customer database, were acquired by jClub, a discount e-commerce store founded in 2014 by Harry Savalia. The acquisition aimed to rebuild the customer and vendor relationships Choxi had, but under a new, more fiscally responsible management structure with an emphasis on improved customer service.