Boxed has revealed that it, along with its subsidiaries, have initiated voluntary Chapter 11 proceedings. The company also seeks to sell Spresso, its software business.
The company will continue to streamline operations and “wind-down” its remaining retail business over the next several weeks, it said.
“This was an incredibly difficult decision, and one that we reached only after carefully evaluating and exhausting all available options. Although this outcome is not what we worked so hard for, we are thankful to everyone, including our customers, who have supported us along the way. Looking to the future, we are incredibly excited to watch the Spresso business continue under new ownership,” said Chieh Huang, co-founder and CEO of Boxed, in a statement. “I am immensely grateful for each and every team member throughout the past decade who has contributed to the journey of Boxed. Through their hard work and dedication, they made a lasting impact on the e-commerce consumables industry.”
According to the company, its board of directors unanimously determined that seeking Chapter 11 protection is the most appropriate path forward.
Boxed intends to fund and protect its near-term operations and cover administrative expenses during the bankruptcy process and transition of its Spresso business to a new legal entity.
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