The company plans to further slash expenses and identified expense reductions of up to approximately $50.0 million in 2023, as compared with 2022, including the newly revealed layoffs. Blue Apron expects to recognize such expenses in the fourth quarter of 2022. The company anticipates to incur approximately $1.2 million in employee-related expenses, primarily consisting of severance payments, substantially all of which will result in cash expenditures. As a result, the company said that it’s cutting its total corporate workforce by approximately 10%. While the New York-based company continues to assess the ability of Sanberg’s affiliate to meet its obligations, Blue Apron is actively working with its financial advisors to maximize value from the pledged collateral, including potentially selling or leveraging the pledged collateral to enhance its credit with its current or future lenders.īlue Apron is also examining multiple initiatives to both reduce expenses and streamline decision-making/organizational structure, including a plan for meaningful reduction in marketing, consulting and labor spend in 2023. 30 date, the company now has the right to foreclose on the pledged collateral. As Sanberg’s affiliate did not fund by the agreed Nov. 6, Blue Apron entered into a pledge agreement under which one of Sanberg’s affiliates pledged shares of private companies to the company to secure the private placement obligation of $56.5 million of Class A common stock. Meal delivery company Blue Apron has released business updates on the status of funding from affiliates of major shareholder and entrepreneur Joseph Sanberg, its expense reduction initiatives and its liquidity position.Īs previously disclosed, on Nov.
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