Online retailer Boxed has been acquired by MSG Distributors, Inc. in an all-cash transaction, according to a Friday press release. No financial details about the deal were disclosed.
Boxed, which filed for Chapter 11 bankruptcy protection in April, focuses on selling bulk-sized pantry items at wholesale prices. MSG, a regional distributor of consumables and household products that also serves B2B accounts, stated it will work to continue serving Boxed customers, vendors and brands.
MSG also will offer established Boxed customers expeditious delivery services, such as next-day delivery, bring back established household brands for Boxed’s vendors and introduce new brands to Boxed’s customers, according to the announcement.
“This acquisition strengthens our inorganic growth strategy and diversifies our distribution models nationwide,” MSG President Mark Gadayev said in a statement. The press release added that this acquisition is meant to “revitalize boxed.com.”
In January, Boxed’s board of directors announced the company was considering “strategic alternatives” including a possible sale, as it faced a cash shortage.
Last November, during its third quarter earnings call, Boxed reported a net revenue decline of 15% on a year-over-year basis and a net loss for the quarter of $26.4 million.
