Online retailer Boxed is considering filing for bankruptcy as the cash-starved company faces pressure to make millions of dollars in payments to creditors it might not be able to afford, according to a Tuesday filing with the U.S. Securities and Exchange Commission.
In the filing, Boxed said that it is working with its financial advisors to identify a buyer for all or most of its assets and “continues to evaluate its options.” The company added that it expects to negotiate a “stalking horse” bid for its assets with a potential buyer. This type of bid, which requires a judge’s approval, sets a floor for a company’s value that other potential bidders would have to top during a bankruptcy auction in order to acquire a company going through bankruptcy.
Boxed sells bulk-sized pantry items online and runs a fresh grocery delivery business in the New York City area in addition to providing e-commerce software to other companies. The firm, which was founded in 2013, went public in late 2021 through a special purpose acquisition company and noted in its first earnings report as a public company that its sales were declining and it was losing money.Retail Dive