Online retailer Boxed’s board of directors is considering “strategic alternatives” that include a possible sale of the company, according to a Thursday morning press release.
The retailer, which is trying to shore up its financial reserves and boost its sagging stock price to meet New York Stock Exchange listing requirements, also said it is “actively exploring” ways to bring in capital and expects to announce new funding within 45 days.
Boxed said it does not plan to provide further information about its efforts to identify options for its future and bring in additional capital “unless and until” the company’s board approves a transaction. The company’s management and financial and legal advisors support the board’s decision to undertake a strategic review, according to the announcement.
The company, which focuses on selling bulk-sized pantry items and also provides e-commerce software to other retailers and operates a fresh grocery delivery business in the New York City region, has been contending with tough financial circumstances in recent months.
Boxed said in November that its net revenue during the third quarter of 2022 — the last period the company released results for — declined 15% on a year-over-year basis, to $41.7 million. In addition, Boxed reported a net loss for the quarter of $26.4 million, more than four times the amount it lost during the third quarter of 2021.
Boxed has also been facing declining liquidity. The company had $32.1 million in cash and cash equivalents on hand as of Sept. 30, compared with $105 million at the end of 2021.
Boxed’s stock market value has declined precipitously in response to the company’s performance. The retailer’s shares fell below $1 in late September, triggering a warning from the NYSE that they could be delisted if the price doesn’t go back above that threshold by early 2023.
Boxed’s share price rose by more than 20% in unusually heavy trading on Thursday morning, to about 31 cents, after the company announced that it is evaluating a potential sale.
via https://www.aiupnow.com
Sam Silverstein, Khareem Sudlow
