Blue Apron Weighs Possible Sale
NEW YORK CITY, NY - After reporting its fourth quarter and full year results, Blue Apron is considering multiple strategies to build up its profitability. One such option, among other “strategic alternatives,” is the possibility of a sale.
“We continue to believe that we have the right strategy to drive our resumption of growth as we work to launch additional new capabilities and test new product offerings,” said Linda Findley Kozlowski, CEO, in a recent press release. “Our strategic alternatives process, together with our cost optimization initiatives, is intended to best position the company for the future, including to support our growth strategy. These efforts reflect the commitment of the Board, management, and myself to doing what’s in the best interest of the business, Blue Apron’s shareholders, and other stakeholders.”
The meal kit provider also announced that it was closing a production facility in Arlington, Texas, as another way of cutting costs.
“We also do still believe that our brand remains the strongest in the U.S. industry,” Kozlowski added in a conference call this week. “And we're seeing increased pressure from the competitive landscape, particularly on a dollar-for-dollar marketing spend standpoint, which is part of the reason that is our focus, when we think about strategic alternatives is how we further invest with a focus on marketing going forward. We are seeing strong results from the product initiatives that we're actually putting out there. And so we’re confident that there is opportunity ahead with the right level of marketing investment.”
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