Assets of Boxed to go up for auction

Assets of online bulk-products retailer Boxed Inc., now under Chapter 11 bankruptcy protection, are being auctioned off by Hilco Streambank, an intellectual property disposition and valuation firm.

The auction is slated to be held on Monday, July 10. New York-based Hilco said assets for sale include the Boxed’s domain name, customer data and trademarks—including the Prince & Spring private brand—plus social media accounts and related items.

Hilco reported that the deadline for bids closes on July 6, and the process includes an opportunity for a “stalking horse” bidder. The company noted that the sale of Boxed’s assets is being conducted under the e-tailer’s Chapter 11 proceedings and requires bankruptcy court approval, with the disposition of the Boxed.com domain name subject to definitive documentation.

“Boxed resonates with both business-to-business (B2B) and business-to-consumer (B2C) customers, offering them the convenience of bulk household essentials delivered to their door, without a membership fee.” Richelle Kalnit, senior vice president at Hilco Streambank, said in a statement. “This offering resonated so deeply with the customer that the brand recently expanded to offer a B2C premium subscription loyalty program, BoxedUp, garnering approximately 32,000 members and generating $21 million in GMV [gross merchandise value] in 2022. Coupled with its one-hour delivery service, Boxed Market, the company’s intangible assets position a buyer favorably for growth.”

In early April, New York-based Boxed announced plans to sell its Spresso technology unit and wind down its retail business under a Chapter 11 bankruptcy filing. The retailer’s stock was delisted from the New York Stock Exchange shortly thereafter.

Boxed cited a “challenging business environment” in making the “difficult-yet-necessary decision to wind down its retail e-commerce operations,” with the company’s board of directors unanimously voting to proceed with Chapter 11 protection as “the most appropriate path forward.” In mid-March, Boxed—impacted in part by the Silicon Valley Bank failure—had disclosed it was mulling a potential bankruptcy filing.

“This was an incredibly difficult decision, and one that we reached only after carefully evaluating and exhausting all available options,” Boxed co-founder and CEO Chieh Huang stated in announcing the bankruptcy filing.

For investors, Boxed offered a robust B2C and B2B retail business and an end-to-end e-commerce platform through a software-as-a-service model. Founded in 2013, the company provided warehouse club-style shopping—including groceries, pantry items, household staples, health and beauty aids, office supplies, private label, and organic and green products—through its website and mobile app. Consumers and businesses were able to buy club-sized packages with free two-day delivery in the continental U.S. on purchases of over $49 (or $79, depending on location), without the membership fees of traditional warehouse clubs. Members of the Boxed Up loyalty program received free shipping for a $19.98 order minimum.

Boxed also offered Boxed Express, an on-demand delivery service for perishables, and in late 2021 entered the rapid grocery delivery arena via its first acquisition: New York City e-grocer MaxDelivery. That service was rebranded as Boxed Market in the 2022 second quarter, when the software and services business also was renamed as Spresso.