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Blue Apron Holdings to Sell Production Facilities

05/19/2023

FreshRealm LLC will purchase the production facilities of Blue Apron Holdings in Linden, NJ. and Richland, CA. in a transaction valued at $50 million representing depreciated book value. Fresh Realm is a supplier of prepared meals to major chains including Amazon Fresh, Every Table, Kroger, Publix, Meijer and Walmart.

Michael Lippold founder and CEO of FreshRealm stated, “We are the only fresh-meals provider to deliver a national platform that simplifies fresh ready-to-eat and ready-to-cook and meal kits through a supply chain to consumers’ tables.”

 

Linda Findley, president and CEO of Blue Apron stated, “As we continue to evolve, we believe there is some opportunity to simplify our direct role in the fulfillment of our product allowing us to focus on growing our brand, our customer base and revenue in the long-term.”

 

Blue Apron will concentrate on product innovation and will leverage FreshRealm’s expertise and production capabilities to provide additional sales channels.

 

Over the past 52 weeks, the shares of Blue Apron (APRN) have declined from $8.22 down to $0.41.  The company has a market capitalization of $35.6 million and closed on May 17th at $0.55.  Insiders hold 35 percent of equity with 19 percent owned by institutions. On April 28th fifteen percent of the float was short. 

 

On May 4th, Blue Apron Holdings released financial results for the first quarter of fiscal 2023.  The company lost $17.0 million on sales of $113.1 million. For the corresponding first quarter of fiscal 2022, the company lost $38.7 million on sales of $117.8 million.  Effective March 31st, 2023, the company posted total assets of $159.7 million including intangibles of $30 million, and property and equipment valued at $54.7 million.  Current liabilities comprised $96.5 million and operating leases and long-term debt amounted to $28 million. On a trailing 12-month basis operating margin was -18 percent; profit margin -19 percent and return on equity -201 percent.

 

It is difficult to see how this company can remain in business having disposed of production facilities, based on the decline in share price and balance sheet. APRN is in danger of being delisted.