Blue Apron Ends Strategic Review Process, Sees Major Pickup In Business
Meal-kit delivery company Blue Apron Holdings Inc said on Thursday its board has concluded a review of its strategic options, after raising cash and seeing an improvement in its business during the COVID-19 pandemic.
New York-based Blue Apron, which went public in 2017, said in February it is considering options including going private and a sale of the company or some of its assets, following rising competition.
'Since late March 2020, Blue Apron has experienced increased demand for its meal kits reflecting, in part, changes to consumer behaviour in response to the COVID-19 pandemic,' the company said.
Blue Apron in August completed an underwritten public offering, generating about $33 million, before entering into a new $35 million senior secured term loan earlier this month.
The company on Thursday posted a 13% increase in third-quarter net sales, as customers, now avoiding venturing out to restaurants due to fears of contracting the new coronavirus, ordered more of its meal kits.
Blue Apron also projected its fourth-quarter net revenue to grow about 15% to 19% from a year earlier.