Chieh Huang, CEO of Boxed
Wholesale
Boxed
Wholesale
Boxed is an online members-only bulk-selling online
store.
Boxed is reportedly in talks to sell to Kroger grocery
store for up to $500 million.
It will reportedly take investment money if a deal is
not reached.
Retailers seem to be circling around online retailer Boxed,
according to multiple reports.
Speculation swirled in recent weeks, starting with
a report by Forbes on January 12 that Kroger and rivals were
looking seriously at buying or investing in the company. Forbes
said a deal could be worth all the way up to $500 million, more
than Boxed latest valuation of $470 million.
No deals have been finalized yet, and any potential deal could
fall through, though
the New York Post reported on January 19 that Kroger is in
"advanced negotiations" with Kroger.
Boxed could raise additional capital if a deal isn't reached for
an acquisition deal, Forbes reported. The Post also reported that
General Mills and Bed Bath & Beyond were also interested in
investing in Boxed.
Boxed is billed as the millennial-friendly alternative to
wholesale stores like Costco and Sam's Club, the retailer has
made a name for itself. A club-based system without the
membership fee, Boxed offers items in bulk ranging from household
brands and its Prince & Spring private label to services like
hotel booking.
Boxed started in 2013, it is about to grow to five distribution
centers across the country with $100 million in yearly sales and
nearly 300 employees. It has raised over $132 million in
investment, including a $100 million in 2016.
Both Boxed and Kroger declined to comment on this story.
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