E-commerce firm Boxed looking to cut 25% of its workforce as it looks for a buyer

It looks like the e-commerce company named Boxed which was started way back in 2013, and the one that did a $100 million revenue just in the first 3 years of its operations, is not having the best of times surviving in the market right now. This is because of way too many reasons which can’t even be described right now but one of the main reason why Boxed is struggling is because of the SVB or Silicon Valley Bank’s collapse. It has been noted that most of Boxed’s assets were in the SVB and since it has collapsed, Boxed is finding it hard to maintain its day-to-day operations.

It is also worth noting that Boxed’s investors and shareholders, back in January this year, even explored the option of selling the company which is a plan still being explored as we speak. Apart from that, boxed is now looking to cut costs as it is laying off about 25% of its workforce. In simple numbers, the company is laying off 32 of its 136 employees as known from the filing in the required Workers Adjustment and Retraining Notice.

Not only is the possibility of a sale being explored, Boxed even says that they might file for bankruptcy if nothing goes to plan as they want to repay their lenders. Boxed is a company which was established about a decade ago and its main operation is to sell goods in bulk and it even has a software division of its own. In the New York City Area, Boxed even runs a fresh grocery delivery business and it is to be noted that fresh grocery delivery businesses are feeling the heat.

The situation at Boxed is so dire right now that it has had to come into retention agreements with their CEO, CFO and president of e-commerce to stay with the company till it looks for a sale, liquidation or restructuring. Boxed now has a time until June 30 to retain these employees and also have to pay one-third of their annual base salary if they remain with the company till this time period. Boxed had already revealed while going public that its sales were declining and it was burning cash.

Leave a Comment