BOXD - Boxed files for bankruptcy eyes sale of software business

2023-04-03 06:56:39 ET

Post-SPAC e-commerce player Boxed Inc ( NYSE: BOXD ) filed for Chapter 11 bankruptcy protection on Sunday, and is eyeing the sale of its software operation.

The company plans to sell its Spresso software business to its first lien secured lenders and will shutter its retail e-commerce operations in the next few weeks. The company had been soliciting proposals for the sale of all or substantially all of its assets since mid-March and had been considering a sale of the business since the start of 2023 .

Spresso is intended to be spun off as a separate business and software customers are not expected to be impacted, according to the company statement.

“This was an incredibly difficult decision, and one that we reached only after carefully evaluating and exhausting all available options,” CEO Chieh Huang said. “Looking to the future, we are incredibly excited to watch the Spresso business continue under new ownership.”

Shares of Boxed ( BOXD ) plummeted over 15% on Friday, bookending an over 98% drop for the stock since it went public through a de-SPAC in late 2021. According to Seeking Alpha data, short interest in Boxed ( BOXD ) stood at 12.13% as of Friday.

Read more on why the Quant team has rated the stock a Strong Sell for the bulk of its short history as a public company .

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