Boxed Inc, an e-commerce grocery platform, announced on Sunday that it has filed for Chapter 11 bankruptcy protection and will wind down its retail operations in the coming weeks. However, the company also revealed that it is pursuing the sale of its Software-as-a-Service (SaaS) business, Spresso.
This plan to sell Spresso comes after Boxed Inc’s announcement last month that it was exploring options to raise capital. The company has stated that the sale of Spresso is in line with its strategy to focus on its core technology and platform capabilities.
Boxed Inc was founded in 2013 and has since then raised over $240 million in funding, with investors including Bessemer Venture Partners, GGV Capital, and DST Global. The company has been successful in providing consumers with an online shopping experience for bulk-sized household essentials, groceries, and other items.
The Impact of Bankruptcy on Boxed Inc
The decision to file for Chapter 11 bankruptcy protection is not uncommon for companies that are facing financial challenges. This type of bankruptcy allows a company to reorganize its debts and operations while continuing to operate its business. For Boxed Inc, this means that it can focus on the sale of its SaaS business while winding down its retail operations in an orderly manner.
However, bankruptcy can also have a significant impact on a company’s stakeholders, including its employees, customers, and creditors. Boxed Inc has stated that it will provide support and assistance to its employees during the wind-down process. The company also stated that it will honor all orders that have been placed on its website and will continue to provide customer service during the transition.
The Sale of Spresso
The sale of Spresso is an important part of Boxed Inc’s plan to focus on its core technology and platform capabilities. Spresso is a cloud-based platform that provides businesses with tools to manage their e-commerce operations. The platform includes features such as inventory management, order processing, and payment processing
The sale of Spresso could be an attractive opportunity for a buyer looking to expand their e-commerce capabilities. Spresso has already been successful in attracting customers such as Coca-Cola and PepsiCo. The platform has also received positive reviews for its ease of use and affordability.
Conclusion
Boxed Inc’s decision to file for Chapter 11 bankruptcy protection and wind down its retail operations may come as a surprise to many, given the company’s success in providing an online shopping experience for bulk-sized household essentials, groceries, and other items. However, the decision to focus on the sale of its SaaS business, Spresso, is in line with the company’s strategy to focus on its core technology and platform capabilities.
The sale of Spresso could be an attractive opportunity for a buyer looking to expand their e-commerce capabilities, as the platform has already been successful in attracting customers such as Coca-Cola and PepsiCo. While bankruptcy can have a significant impact on a company’s stakeholders, Boxed Inc has stated that it will provide support and assistance to its employees during the wind-down process and will continue to honor customer orders and provide customer service.
