Blue Apron Holdings Inc. (NYSE:APRN) shares slipped 8% to $8.19 in early Monday trading, following a 67% surge on Friday, after the home meal kit delivery service said it has closed the sale of its operational infrastructure to fellow meal company FreshRealm.
BlueApron received $25 million in cash on closing and is eligible to receive up to $25 million more if certain milestones are reached, the company announced.
“Blue Apron is now an asset-light company, focused on the growth of its direct-to-consumer business,” the company stated, adding it “expects to accelerate the expansion of its product offerings, including the addition of new convenient options.”
Blue Apron acknowledged that being “asset-light” also involves “a reduced headcount and administrative cost,” but did not disclose the number of jobs that would be eliminated.
FreshRealm will be the exclusive supplier of Blue Apron kits and was already the manufacturer of Blue Apron’s popular ‘Heat & Eat’ meals, CNN reported.
On Thursday, BlueApron stock fell 15% after it revealed a one-for-12 consolidation of its common shares.
In early May, the company reported that its first-quarter 2023 net revenue decreased 4% year-over-year to $113.1 million, primarily due to a decline in customers and orders.
Contact Sean at sean@proactiveinvestors.com