The stock market is trading at its lowest point in more than three years.
Wayfair Inc., the Canadian online retailer, announced Thursday that it would be filing for Chapter 11 bankruptcy protection.
Investors had been looking for a way out of the retailer’s $50 billion debt, which has fueled its $11.4 billion debt to its shareholders.
The company said Thursday that the Chapter 11 filing would be made effective immediately and that it will begin paying its creditors within five days.
Wayfair’s stock has dropped by more than 5% since the announcement of the bankruptcy filing.
The stock was trading at $24.25 on Thursday.
WayFair’s shares fell by more, as the company’s stock price dropped more than 4%.
Wayfair, founded in 1998, was founded by founder John Wayfair, who sold the company in 2001 to Michael K. Dell.
WayFair is owned by investors including Peter Thiel and Bill Gates.