Market News

Boxed Plunges after Possibility of Potential Bankruptcy

Shares of Boxed (NYSE: BOXD) plunged by more than 35% in pre-market trading on Wednesday after the online wholesale retailer stated in a company filing on Tuesday that it was contemplating filing for potential bankruptcy among other options.

The company added that it was “actively soliciting proposals for the sale of all or substantially all of its assets, as well as other material transactions that would improve its liquidity position. The Company continues to evaluate its options, which may include potentially filing for relief under the U.S. Bankruptcy Code and other strategic alternatives.”

At the start of this year, BOXD announced that it was exploring a possible sale of the company. The company has also disclosed that a forbearance agreement with one of its lenders is set to expire this Sunday and it has currently “not delivered a debtor-in-possession budget acceptable to the Lenders, entered into a binding debt commitment letter and term sheet or made the prepayment, as specified under the terms of the Forbearance Agreement.”

While Boxed continues to be in ongoing discussion with the lenders, “the Company may not be able to satisfy the terms of the prepayment at this time.”

In the past year, BOXD stock has tanked by more than 90%.

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