On Sunday, Boxed Inc, an e-commerce grocery platform, filed for Chapter 11 bankruptcy protection and announced plans to sell its software business, Spresso. The company also stated that it will be winding down its retail operations in the coming weeks.

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In a statement, Boxed CEO and co-founder Chieh Huang said, “This was an incredibly difficult decision, and one that we reached only after carefully evaluating and exhausting all available options.” The company plans to fund its near-term operations and cover administrative expenses through access to its cash collateral as it winds down.

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The bankruptcy filing comes weeks after Boxed said it held a majority of its cash deposits and other liquid assets in accounts at the collapsed Silicon Valley Bank. According to Bloomberg News, First Citizens could reach a deal as soon as Sunday to acquire Silicon Valley Bank from the Federal Deposit Insurance Corp (FDIC).

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Boxed said that customers would not face service disruptions during the process of selling Spresso. The company had announced last month that it was exploring options to raise capital.

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The news of Boxed Inc filing for bankruptcy protection and its plans to sell its software business has been met with shock and surprise in the industry. Many industry professionals are now waiting to see how the situation unfolds in the coming weeks.

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Sources:

https://www.reuters.com/article/boxed-bankruptcy/boxed-files-for-bankruptcy-protection-seeks-sale-of-software-business-idUSL4N2NU2V7

https://www.bloomberg.com/news/articles/2021-04-03/first-citizens-said-to-near-deal-for-silicon-valley-bank-assets
Sources: https://brandequity.economictimes.indiatimes.com/news/business-of-brands/us-ecommerce-firm-boxed-inc-files-for-bankruptcy-eyes-software-unit-sale/99207968