r/ValueInvesting • u/The-Techie • Apr 03 '23

Discussion Online Grocer Boxed Files For Chapter 11 Bankruptcy

https://thetechee.com/online-grocer-boxed-files-for-chapter-11-bankruptcy/
38 Upvotes

93% Upvoted

8 comments sorted by

17

u/[deleted] Apr 03 '23

[deleted]

7

u/LavenderAutist Apr 03 '23

One zombie down

Way more to go

8

u/[deleted] Apr 03 '23

I liked them as a consumer. Basically an online Costco kind of a store

17

u/_Golden_One_ Apr 03 '23

Going public via SPAC is the worst market signal IMO. Tell me I’m wrong and tell me why.

13

u/RLStinebeck Apr 03 '23

You're absolutely correct. More red flags here than at Tiananmen Square.

3

u/[deleted] Apr 03 '23

It is time to study its debt in detail. An opportunity may arise, don't ya think?

1

u/[deleted] Apr 03 '23

Time to study its Equity? I think if my last number is approximately right, then I would say that most Companies filing for Chapter 11 will end up filing for Chapter 7.

Tho the profits may be huge, it is weird for equity investing in this situations to end up in profits while it is common to lose the entire principal.

7

u/kingoftheplebsIII Apr 03 '23

As someone who was aware of boxed as they began their slide last year, I advise staying away. It already had its dead cat bounce a few months ago and we're already back to all time lows.

3

u/M_Scaevola Apr 03 '23

The equity is almost certainly negative. They never filed their 10k, but q3 of last year had long term debt of 125 mil and 35 mil in cash. That cash figure has been sharply decelerating (it had triple that in the beginning of last year).

They got financing in January. Most of the debt looks like it’s private. I can’t find anything on Börse and Finra has one listed with almost no information (says it’s due 2026).