Digital River Inc. is set to shut down its Minnesota operations, according to multiple press reports and internal communications.
The company will close its Minnetonka headquarters by the end of March, impacting 122 employees, including remote workers nationwide. A notice filed with the Minnesota Department of Employment and Economic Development confirmed the layoffs.
Digital River is a veteran player in the B2B ecommerce, payments, and marketing services industry.
Why Digital River is set to shut down
At its peak, Digital River processed over $30 billion in online transactions. It also served major clients such as Adobe, Lenovo, and VMware. However, the company’s financial troubles began in early January 2025, when it lost access to crucial funding from its revolving credit facility, according to multiple social media and press reports.
Despite attempts to secure additional capital, Digital River was unable to recover, leading to the initiation of its wind-down process including staffing cuts and closing its headquarters.
On Jan. 28, 2025, Digital River filed for insolvency for its German subsidiaries, Digital River GmbH and Digital River Holding GmbH, at the Cologne Insolvency Court. The company has already suspended services to most of its global customers, signaling the start of its operational closure.
The company’s trouble was exacerbated by the loss of a key customer, which placed immense strain on its financial resources, according to multiple social media and press reports.
Digital River’s business model heavily relied on processing payments for top-tier companies, and the loss of major accounts combined with rising operational costs and other financial pressures led to the company’s downfall.
In a statement, CEO Barry Kasoff expressed deep appreciation for the efforts of Digital River’s employees. He also acknowledged the difficulty of the decision to wind down operations. Kasoff addressed the company’s financial difficulties, including the loss of key customers, the impact of changing trade policies, and rising operational costs. On Jan. 27, 2025, Digital River sent a letter to its German clients informing them of the insolvency proceedings and service suspensions.
“We deeply regret the inconvenience this may cause and apologize for any disruption,” the letter read.
Digital Commerce 360 reached out to Digital River for comment.
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