Boxed Files for Chapter 11 Bankruptcy
Online retailer Boxed became the latest company that's gone public via merging with a special purpose acquisition company (SPAC) to file for bankruptcy. Founded in 2013 as an online bulk retailer, Boxed said on Sunday that it's filing for Chapter 11 bankruptcy protection and will execute a sale of its Spresso software business to its first-lien secured lenders. It will also wind down its retail business.
Total Retail's Take: Boxed has been negatively impacted by the slowdown in the online grocery sector post-pandemic as consumers increasingly return to physical storefronts to purchase their essential items. Furthermore, the retailer held a majority of its cash deposits and other liquid assets in accounts at the collapsed Silicon Valley Bank, which disrupted operations. While an innovative concept at its launch 10 years ago, the online grocery space has become much more crowded in recent years, including the introduction of delivery services such as Instacart, which is another factor that eroded into Boxed's customer base and market share in a niche category to begin with.
Joe Keenan is the executive editor of Total Retail. Joe has more than 10 years experience covering the retail industry, and enjoys profiling innovative companies and people in the space.