Munchery Inc., a food delivery service once valued at $300 million, has filed for bankruptcy and plans to sell its main facility and equipment to airline catering business Gate Gourmet Inc., WSJ Pro Bankruptcy reported. South San Francisco, Calif.-based Munchery, which stopped operating in January as its financing ran out, has liabilities of about $35 million, including $3 million owed to thousands of customers who have balances on gift cards, according to a filing last week in U.S. Bankruptcy Court in San Francisco. The company listed $1 million to $10 million in assets, which include a lease and equipment at a 70,000-square-foot facility in South San Francisco. Munchery laid out several reasons for its chapter 11 filing: an overly aggressive expansion, intensifying competition, rising costs, and the impact that bad publicity about Blue Apron Holdings Inc.’s financial stumbles had on smaller meal-delivery startups trying to maintain financing.
