Boxed Files For Bankruptcy, To Divest Software Business

Boxed Inc BOXD has filed for Chapter 11 bankruptcy and is looking to divest its software business.
The e-commerce grocery platform also decided to wind down its retail e-commerce operations over the next several weeks.
The company had entered into a Forbearance Agreement with its first lien-secured lenders as an interim solution to protect the business.
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Boxed intends to fund and protect its near-term operations and cover administrative expenses through access to its cash collateral as it winds down during the Chapter 11 process and transitions its Spresso business to a new separate legal entity that will continue as a going concern.
"This was an incredibly difficult decision, and one that we reached only after carefully evaluating and exhausting all available options," said CEO and co-founder Chieh Huang.
The bankruptcy filing comes sometime after the company said it held majority of its cash deposits with the collapsed Silicon Valley Bank.
Price Action: BOXD shares closed lower by 15.27% at $0.1898 on Friday.