BOXD - Boxed sinks 47% after disclosing it's evaluating possible bankruptcy filing

2023-03-15 14:18:19 ET

Grocery platform Boxed ( NYSE: BOXD ) plunged 47% after disclosing that it's evaluating a possible bankruptcy filing among other strategic options.

Boxed ( BOXD ) is actively soliciting proposals for the sale of all or substantially all of its assets, as well as other material transactions that would improve its liquidity position, the company said in an 8-K filing on Tuesday.

Boxed ( BOXD ) continues to evaluate its options, which may include potentially filing for relief under the U.S. Bankruptcy Code and other strategic alternatives.

The 8-K filing also indicated that Boxed ( BOXD ) on Friday entered into retention agreements with top executives, including CEO Chieh Huang, "in order to retain critical talent in an effort to maximize value during a period of significant volatility."

Boxed ( BOXD ) announced Jan. 3 that its board was exploring a possible sale, sending its shares soaring more than 40% that day. On Jan. 20 Boxed stock also popped 19% after announcing that it received $20 million in new financing.

Boxed has seen its stock plunge 98% since it went public through a de-SPAC in December 2021. While Boxed ( BOXD ) was originally mainly known for shipping boxes filled with toilet paper and potato chips, the company also moved into the software-as-service or SaaS business and that business is called Spresso.

A forbearance agreement that Boxed ( BOXD ) has with lenders is set to expire on Sunday, according to a recent regulatory filing.

The disclosures come after a Seeking Alpha report a month ago that the company had talked to two potential suitors about a purchase of the company.

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