(Bloomberg) – Blue Apron Holdings Inc. fell to a record low after withdrawing its forecast due to not receiving expected funding from affiliates of one of its top investors.
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The tableware distribution platform said on Monday that due to funding delays, it signed a pledge agreement with one of its affiliates to secure payment of the $56.5 million the company is owed. . Blue Apron is allowed to act on the agreement if the funds are not paid by November 30. If it does not receive the funds or negotiate a bailout from its lenders, the company expects it to be in breach of the covenant. your minimum liquidity by the end of this month at the earliest.
Cash concerns have plagued Blue Apron, and its private placement with longtime investor Joseph Sanberg presents a difficult solution. The company said a month ago that it was uncertain about the timing of a commitment from Sanberg’s affiliate, RJB Partners LLC. In May, Sanberg asked his Twitter followers if he should use Blue Apron in private.
On Monday, the New York-based company cited uncertainty around funding its decision to withdraw its revenue guidance for 2022.
Sanberg did not immediately return an email seeking comment before normal business hours.
Shares fell 17% at 9:35 a.m. in New York to $1.71.
(Update shared in first and sixth paragraphs.)
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