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Tony Hsieh’s American Tragedy: The Self-Destructive Last Months Of The Zappos Visionary

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I n August, shortly after Tony Hsieh, the legendary entrepreneur behind Zappos, moved to Park City, Utah, he eagerly awaited a visitor: the singer Jewel. Soon after arriving, Jewel played a private acoustic set for around 50 residents of the community Hsieh was building there—a reprise of sorts of the city-within-a-city of artists and entrepreneurs that Hsieh had famously created in downtown Las Vegas. It should have been a magical moment, according to a person who was there, with the Grammy nominee seated in front of a fireplace and views of the Wasatch Mountains framing the performance. It was difficult for him to be alone. But within a day, Jewel abruptly left. Shortly after, the singer sent Hsieh a letter via FedEx, since he had forsworn email and texts as part of a digital cleanse. I think you are taking too many drugs that cause you to disassociate. Exactly one week ago, in the early morning hours of the day after Thanksgiving, Hsieh died from his exposure to a shocking house fire in Connecticut, where he had been staying. He was just In the days since, the outpouring of grief has rivaled any for a business leader since the passing of Steve Jobs a decade ago. From Bill Clinton to Ivanka Trump to Jeff Bezos, thousands of people weighed in to share memories, photos and videos of a man who was widely loved, preserving the legacy of a tech entrepreneur who made an impact not just on his peers, but on his employees and even complete strangers, each reciting stories of exceptional generosity, humanity and vision. Taken together, the memories of Hsieh paint an image of a man whose mission in life was to create happiness. This took shape in many ways. In pioneering, at Zappos, the concept of an online store fueled by a customer-first, no-questions-asked return policy, Hsieh arguably had a bigger effect on online retail than anyone short of Bezos himself. But while he directly by the tens of thousands and indirectly by the millions delivered on making other people smile, Hsieh was privately coping with issues of mental health and addiction. Forbes has interviewed more than 20 of his close friends and colleagues over the past few days, each trying to come to grips with how this brightest of lights had met such a dark and sudden end. Reconciling their accounts, one word rises up: tragedy. According to numerous sources with direct knowledge, Hsieh, always a heavy drinker, veered into frequent drug use, notably nitrous oxide. Friends also cited mental health battles, as Hsieh often struggled with sleep and feelings of loneliness—traits that drove his fervor for purpose and passion in life. Friends and family members, understanding the emerging crisis, attempted interventions over the past few months to try to get him sober. Instead, these old friends say, Hsieh retreated to Park City, where he surrounded himself with yes-men, paying dearly for the privilege. Ultimately, that may have been a fatal trait. G rowing up in San Francisco as the son of Taiwanese immigrants, the oldest of three boys, Hsieh picked up a combination of problem-solving his father was a chemical engineer and empathy his mother was a social worker that would become his hallmark. At Harvard, he majored in computer science, but his big break came from securing the rights to sell pizzas to his dorm, since one of his best customers was Alfred Lin, who would become his best friend and close business partner. Hsieh had an addictive personality, and in his 20s, he was addicted to ideas. So he and Lin launched a venture capital fund to invest in them, turning part of an old car dealership into a startup incubator, complete with a hot tub and DJ-ready sound system. The result was a series of values that defined the company, including valuing employee inputs through their personalities over their position. The key trait they were looking for: passion. Such a company culture was almost unheard-of then, but it worked—people proved open to buying shoes on Zappos because the company made it so painless to return them, giving customers up to a year and accepting them with a smile. By then, the company had relocated from the Bay Area to Las Vegas. It made an offer to acquire the company that year, and when those talks fell apart, Amazon launched its own online shoe retailer to compete. And Hsieh, in turn, tried to amp up the stakes in terms of the impact he could have. He wrote his bestselling treatise. And he began his efforts to turn his Downtown Project in Las Vegas into his utopian canvas, drawing worldwide attention. O ne thing was consistent with Hsieh across all those good years: Those who entered his orbit found their lives transformed. Cathy Brooks, a former journalist, once interviewed Hsieh for a podcast. Years later, she bumped into Hsieh at a conference and complained that she was feeling without purpose or direction. He invited her to come to Vegas and to bring her dog. Mossler, pictured with Hsieh, said he was never interested in shoes. Similar stories abound in Vegas. He surrounded himself with people who were looking to innovate, build—and have fun. The parties were nearly constant, and Hsieh even had his own signature drink—shots of a herbaceous Italian spirit, Fernet—that he would imbibe anytime, with visiting clients, journalists or seemingly anyone. But his brainchild also appeared to carry a dark side. Across the span of 18 months in and , three founders of startups linked to the Downtown Project died by suicide. Some people suggested the deaths had been linked to the pressures of the initiative. Hsieh offered that the rate of the suicides was not higher than for Vegas in general. And even if we saw him at TED, he would skip the talks and host the late night. Whereas we would be in bed by Toward the end of he stepped away from leading the Downtown Project and moved from his high-rise condo into an Airstream park, complete with an LED-lit stage and a roaming alpaca. He continued to helm Zappos, while cultivating an image as a guru who loved to party hard, whether at speaking appearances with Bill Clinton or adventures at Burning Man. Their definitions of happiness had changed—a feeling echoed by several Hsieh friends, who said that they had married and started families, while Hsieh remained an extremely rich Peter Pan. A s the Covid pandemic swept through the U. He split time between Las Vegas and Park City across the spring, and then appears to have fully moved to the latter over the summer. During this transition, he began making his double-your-best-salary offer to new members of his circle if they relocated with him. Numerous longtime friends tell Forbes that they suddenly found themselves unable to reach Hsieh. Hsieh could point to his self-imposed digital detox as an excuse for his sudden reclusiveness, though that now seems a convenient excuse to avoid those who, like Jewel, might not approve of his latest reinvention. Jewel, for one, expressed concern directly to him. And the amount of N2O you are doing is not natural. You will not hack sleep and you will not outsmart nature. By August, he was out at Zappos, after over 20 years at the helm. Amazon denies that they pushed him out, despite rumors. Even if they had, though, it would be hard to blame them. A t a. She could not immediately be reached for comment. While several people escaped the main house, Hsieh had reportedly locked himself, either intentionally or by accident, in a storage area. The coroner has already declared his passing accidental. In some ways, count him as another Covid victim, except that instead of succumbing to the disease itself, the virus appears to have accelerated some wrenching internal battles and a series of terrible external decisions. Jewel echoed those sentiments this week, serenading Hsieh in a tribute video that she posted on her social media accounts on Wednesday. Additionally, the story has been updated to state that Tony Hsieh turned part of a car dealership into a startup incubator, not the entire property. Our community is about connecting people through open and thoughtful conversations. We want our readers to share their views and exchange ideas and facts in a safe space. In order to do so, please follow the posting rules in our site's Terms of Service. We've summarized some of those key rules below. Simply put, keep it civil. Thanks for reading our community guidelines. Please read the full list of posting rules found in our site's Terms of Service. Forbes Innovation. Edit Story. Daily Cover. Angel Au-Yeung Former Staff. David Jeans Forbes Staff. Senior writer covering tech, defense and national security. Dec 4, , pm EST. When the business icon died in a fire last week, questions abounded. The answers seem rooted in a Covid-period spiral, where he turned to drugs and shunned old friends. Angel Au-Yeung. David Jeans. Editorial Standards Forbes Accolades. Join The Conversation Comments. One Community. Many Voices. Create a free account to share your thoughts. Read our community guidelines here. Forbes Community Guidelines Our community is about connecting people through open and thoughtful conversations. Your post will be rejected if we notice that it seems to contain: False or intentionally out-of-context or misleading information Spam Insults, profanity, incoherent, obscene or inflammatory language or threats of any kind Attacks on the identity of other commenters or the article's author Content that otherwise violates our site's terms. So, how can you be a power user? Protect your community. Use the report tool to alert us when someone breaks the rules.

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