I have no idea where they spent their money - from the article it sounds like some of it may have gone towards misguided inventory purchases, but why would a company like this need its own technology infrastructure? It seems very well-suited for operating on someone else's sales platform (Shopify, or something similar). Let the third-party focus on uptime and scaling while you worry about marketing, promotion, and order-fulfillment of your site and its products.
from the article it sounds like some of it may have gone
towards misguided inventory purchases, but why would a
company like this need its own technology infrastructure?
They're a retail company; by inventory, perhaps it means they spent all their cash on a big shipment of diapers and sippy cups.
