Amazon rival discount retailer files Chapter 11 bankruptcy

Amazon owns so much of the online retail market that competing with it, at least for newer players, requires doing something very different than the online leader.

eBay, for example, in its heyday, used an auction model, creating the possibility that consumers might be able to "win" an item at a lower price than traditional retail.

Traditional brick-and-mortar chains have competed with Amazon by leveraging their stores. It helps Best Buy sell appliances and electronics, since people can see what they're buying in a physical store, yet have it delivered with all the convenience offered by a pure-digital retailer.

Another Amazon rival, FlexShopper, has tried to make electronics, appliances, computers, furniture, and more accessible to everyone. FlexShopper and seven affiliates filed for Chapter 11 bankruptcy in Delaware on December 22, 2025, reporting minimal assets and liabilities, according to MarketScreener.

Still, as you can see, the top five online retailers are all giant brands that have a brick-and-mortar presence, with Amazon as the only exception.

Top 5 U.S. online retailers by e-commerce sales (2024)

• Amazon.com, $143.7 billion in U.S. online sales: Amazon leads the U.S. ecommerce market by a large margin.
• Walmart.com, $79.2 billion in U.S. ecommerce revenue: Walmart is the clear second place.
• Apple.comestimated$41-42 billion in online sales: Apple’s online sales place it among the top U.S. sites (higher than Target by many estimates, but the company does not break out these numbers in its earnings reports).
• HomeDepot.com, $22.5 billion in U.S. ecommerce revenue: Home Depot rounds out the top five.
• Target.com: $20.5 billion in U.S. ecommerce sales

"Amazon’s U.S. e-commerce share exceeds 40%, dwarfing smaller online retailers, according to Bernstein analysts, Investing.com reported.

"Amazon's ability to grow absolute sales faster than its biggest rivals stems from the fact that it's no longer just a retail company. In fact, it makes greater profits from its cloud computing and advertising businesses than it makes from retail," wrote The Motley Fool's Adam Levy.

Amazon can actually afford to lose money on a sale because of its other busineses, according to Citi Research.

"We believe Amazon is intentionally selling goods to consumers at a loss," Citi Research analyst Jason Bazinet wrote in a note. "But, it is leveraging dual-purpose infrastructure (servers, fulfillment centers, web traffic) to profitably sell services to Enterprises."

That makes it challenging for any retailer to compete with Amazon, but FlexShopper attempted to win over customers by building its business around a consumer-friendly payment model.

FlexShopper files Chapter 11 bankruptcy

FlexShopper uses a lease-to-own business model.

"Lease-to-own with FlexShopper lets you get the products you love — like furniture, electronics, and appliances — without paying the full price upfront. Take your item home today and make affordable weekly or monthly payments; once your plan is complete, it’s yours to keep. Or, pay it off in 90 days for the advertised cash price — no hidden fees or long-term commitment," the company shared on its website.

Traditionally, rent-to-own or lease-to-own models used marked-up prices so consumers pay much more over time than if they had made the purchase from a traditional store. FlexShopper pledges to not mark items up.

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"If you pay off your lease within 90 days, you will only be required to pay the cash price stated in your agreement, without incurring any rental fees," it shared.

In some cases, customers do just want to use the item for a period of time, and it can be returned at the end of the lease.

FlexShopper Chapter 11 bankruptcy filing highlights

• FlexShopper, Inc. and seven affiliates filed voluntary petitions for reorganization under Chapter 11 in U.S. Bankruptcy Court (District of Delaware) on December 22, 2025.
• The company listed assets and liabilities each between $0.01 million and $0.05 million, indicating extremely limited remaining financial resources.
• A Chapter 11 filing means FlexShopper is seeking to restructure its debts and continue operating (rather than liquidating assets under Chapter 7).
  Souurce: MarketScreener
• Legal counsel: Represented by Robert J. Dehney of Morris, Nichols, Arsht & Tunnell.
• Financial advisors:
  • GlassRatner Advisory & Capital Group, LLC – financial advisory
  • Two Roads Advisors LLC – investment banking
  • Epiq Corporate Restructuring, LLC – claims and administrative agent services
• FlexShopper had previously faced Nasdaq compliance struggles due to multiple delayed financial filings (10-K and 10-Qs) and was not able to meet SEC filing deadlines, triggering deficiency notices and a delisting process, according to Seeking Alpha.
• The company received an extension from Nasdaq in mid-2025 to regain compliance, but still failed to file necessary reports by the deadline, leading to suspension/delisting actions, reported Investing.com.
• Throughout 2025, FlexShopper experienced leadership departures and executive restructuring, including board and officer resignations amid financial stress and reporting problems, according to Ad Hoc News.
• The firm also endured credit agreement defaults and forbearance amendments with lenders, pointing to deep financial strain before the bankruptcy, reported AInvest.

Nasdaq delisted FlexShopper

FlexShopper received a notice on October 14, 2025, from the Listing Qualifications Department of The Nasdaq Stock Market, advising the company that it has initiated a process to delist the Company’s common stock from Nasdaq, according to Nasdaq.com.

"According to Nasdaq’s notice, the delisting is a result of the Company having not filed its Annual Report on Form 10-K for the period ended December 31, 2024, Quarterly Report on Form 10-Q for the period ended March 31, 2025, and Quarterly Report on Form 10-Q for the period ended June 30, 2025, with the Securities and Exchange Commission by October 13, 2025, the final deadline for filing the delinquent reports pursuant to Nasdaq Listing Rule 5250(c)(1)," the company shared in a press release.

The company filed a formal SEC notice removing its listing in November.

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