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Volusion Bankruptcy: What This Means For eCommerce

September 04, 2020
2 Min Read
Volusion Bankruptcy: What This Means For eCommerce

Volusion has always been a trusted company that provides cloud-hosted online stores for relatively smaller businesses. The company revolves around helping other businesses leverage eCommerce to grow.

Unfortunately, many unexpected events have happened for Volusion in the past year. Things took a turn for the worst last September when the company's Google Cloud got hacked.

Volusion Bankruptcy: What Happened?

On September 7th, 2019, Volusion’s servers were hacked with malicious JavaScript code. This code was loaded on over 6,000 online stores connected to the company.

The breach was not discovered until October, and, by then, over 200,000 credit card records had been stolen and sold on the dark web. Of those 200,000 credit cards, the hackers stole about $1.6 million.


Last month, Volusion filed for Chapter 11 bankruptcy protection to recapitalize the company among other things. They believed this was the fastest way to get the company back on solid ground and remain open.

Chapter 11 bankruptcy protection allows reorganization for corporations to keep their businesses alive while paying their creditors over time. This way, Volusion can continue to help small businesses while fixing their own.

When asked why Volusion filed for bankruptcy, this was their response:

“We took this action after exploring a number of different options to address an unstable capital structure involving matured debt. Through Chapter 11, we can continue to operate our business as usual while we negotiate a path forward that will ultimately lead to an even better, stronger Volusion.’

− Volusion

Because they filed for bankruptcy, eCommerce merchants on Volusion’s platform can continue using it to grow their business. Despite Volusion going under a financial restructuring, individual businesses tied to the company will not be affected.

There was concern circulating about the Volusion bankruptcy due to the fact that Volusion was set to launch their new app, VOLT. This new app is meant to help eCommerce stores improve their organic search rankings, offering faster load times and increase conversions.

However, Volusion is continuing with the launch of VOLT to the market, stating that Chapter 11 will not be an issue.

Next Steps

So, now what? If your eCommerce store is still using Volusion, we encourage you to re-platform to position your business for growth. With over 13 years of eCommerce experience, our experts have seen and built successful online stores for clients using two trusted platforms: BigCommerce and Shopify.

We recommend BigCommerce for mid-market retailers looking to expand their business and grow revenue. Shopify, on the other hand, is more beneficial to smaller online stores with the same goals of increasing sales and driving growth.

If you're not sure which is best for your specific eCommerce needs, we created a guide to BigCommerce vs Shopify to help you weigh your options.


Bankruptcy can be seen as a negative term, but when protected, it can help your company in times of need. We encourage all eCommerce businesses to ensure protection and grasp and understanding of the legal ramifications.

If you would like to learn more about Volusion bankruptcy and its effect on eCommerce, or how Groove Commerce can help with re-platforming, contact us through the form below. A member of our team will be in touch with you soon!

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About the author
Internal Marketing Manager

Spencer Flaherty is an eCommerce blogger who loves exploring the latest trends and technologies in the industry. From chatbots to virtual reality, they cover it all.

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