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E-commerce Grocery Platform Boxed Inc Files for Chapter 11 Bankruptcy Protection

Boxed Inc, an e-commerce grocery platform, has filed for Chapter 11 bankruptcy protection and is planning to sell its software business, Spresso, according to a statement released on Sunday. The company will also wind down its retail operations in the coming weeks. The decision to sell Spresso comes after the company's announcement last month to explore options to raise capital.

Picture: Kumaon Jagran

Boxed CEO and co-founder Chieh Huang said in a statement that the decision to file for bankruptcy was a difficult one, and one that the company reached only after carefully evaluating all available options. He added that Boxed intends to fund its near-term operations and cover administrative expenses through access to its cash collateral as it winds down.

The Spresso business will be sold to first lien lenders, and customers would not face service disruptions during the process, the online platform said. The bankruptcy filing comes weeks after Boxed said it held a majority of its cash deposits and other liquid assets in accounts at the collapsed Silicon Valley Bank.

Boxed was founded in 2013 and quickly became a popular online retailer of bulk-sized groceries and household goods. The company raised more than $240 million in funding from investors, including GGV Capital, Bessemer Venture Partners, and First Round Capital. In 2018, Boxed was reportedly valued at $600 million.

However, the company struggled to turn a profit, and faced increasing competition from Amazon, Walmart, and other retailers. In 2020, Boxed reportedly hired investment bank M. Klein and Company to explore strategic options, including a potential sale.

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