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Grocery platform Boxed (NYSE:BOXD) sunk 43% in after hours trading 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 continues to evaluate its options, which may include potentially filing for relief under the U.S. Bankruptcy Code and other strategic alternatives.
The disclosure comes after a Seeking Alpha report a month ago that the company had talked to two potential suitors about a purchase of the company. Boxed has had talks with AEON Co. Ltd (OTCPK:AONNY) and at least one other suitor, according to a person familiar with the matter.
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 96% 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 company continues to have talks with the lenders and has not delivered a debtor-in-possession budget acceptable to the lenders, entered into a binding debt commitment letter and term sheet or made the prepayment. Boxed said it may not be able to satisfy the terms of the prepayment at this time.
