It seems like a lifetime ago when SPACs were the “it” way to take companies public, and during the pandemic, eCommerce delivery businesses were the “it” business model, but disruptors sometimes get disrupted, according to a PYMNTS analysis. The latest reminder came when Boxed, the online grocery retailer, filed for chapter 11 and said that it would wind down operations. The pressures are apparent in that it had $102 million in assets, outpaced by the $190.4 million in liabilities. Last trading at about 18 cents a share, the company’s descent starkly contrasts with a trading history that began at the end of 2021 amid the pandemic, where the shares peaked at more than $13. The SEC filing detailing the chapter 11 process and the wind-down shows that the “company continues to accept orders through its Union, N.J., fulfillment center for its remaining inventory.” The firm has said that in its “Bigger is Better” sale, consumers can save up to 60% on their purchases. The chapter 11 filing did not come out of the blue, as Boxed had said that it was negotiating with its lenders and exploring a sale of the business. In addition, the turmoil of the Silicon Valley Bank collapse hit close to home. Boxed had had most of its cash at the failed bank but managed to move those funds, but Boxed’s problems ran deeper. It offered bulk delivery of groceries and other items to customers (households and businesses) and also sold software to retail clients, but overall sales in the third quarter were off 15% to $41.7 million as retail active customers slipped to 124,000 from 157,000 in 2021 (though retail sales were up nearly 9%).
