After filing for Chapter 11 bankruptcy protection in April, online wholesale retailer Boxed has been acquired. U.S.-based regional distributor MSG Distributors, Inc. announced this morning its acquisition of Boxed.com and “other intellectual property portfolios and affiliates” in an all-cash transaction.

What happened to Boxed? In early, 2023, Boxed filed for bankruptcy and has since been in the process of winding down operations. However, Boxed is now under new ownership and is working on relaunching an elevated online experience soon.

Boxed is an online bulk grocery retailer used to offer wholesale club experience for modern shoppers.

Retail analysts said that Boxed faced pressure from company's like Costco and Sam's Club, particularly as inflation led more shoppers to go with Boxed's more familiar rivals. The downfall of Boxed is comparable to the collapse of businesses like Webvan and Brandless.

On April 2, 2023, Boxed officially confirmed that it was filing for Chapter 11 bankruptcy and announced that it would be winding down all retail operations. On August 18, 2023, Boxed was acquired by MSG Distributors, who currently has plans to relaunch the brand later this year.

Variable costs are high for online retailers because of shipping costs, but selling items in bulk dramatically reduces cost per unit by spreading shipping cost over multiple items. Boxed has competitive prices for their consumers while being able to make a profit because of their strategic decision to sell in bulk.

Chieh Huang It is based in New York City and was founded in August 2013 by Chieh Huang, Jared Yaman, Christopher Cheung, and William Fong. Boxed, Inc. The company has three fulfillment centers around the country in New Jersey, Nevada, and Texas, which allow orders to be delivered within two days.

In addition, Boxed reported a net loss for the quarter of $26.4 million, more than four times the amount it lost during the third quarter of 2021. Boxed has also been facing declining liquidity. The company had $32.1 million in cash and cash equivalents on hand as of Sept.

The Boxed business model is quite simple: purchase goods direct from manufacturers and distribute to consumers at a relatively cheap price.

It is based in New York City and was founded in August 2013 by Chieh Huang, Jared Yaman, Christopher Cheung, and William Fong. Boxed, Inc. The company has three fulfillment centers around the country in New Jersey, Nevada, and Texas, which allow orders to be delivered within two days.

Variable costs are high for online retailers because of shipping costs, but selling items in bulk dramatically reduces cost per unit by spreading shipping cost over multiple items. Boxed has competitive prices for their consumers while being able to make a profit because of their strategic decision to sell in bulk.

Boxed holds several positive signals, but we still don't find these to be enough for a buy candidate. At the current level, it should be considered as a hold candidate (hold or accumulate) in this position whilst awaiting further development.