Meal delivery startup Munchery has filed for Chapter 11 bankruptcy protection, after shutting down operations in January, reports San Francisco Chronicle. In addition to $28.5 million secured debt to lenders, the company owes $6 million more to 230 vendors, suppliers, and thousands of former customers with gift cards.
CEO James Beriker attributes the downfall of the company to a few factors. He notes having so much capital available, "combined with the perception that the on-demand food delivery market was expanding quickly and would be dominated by one or two brands...drove the company to aggressively invest in its business ahead of having a well-established and scalable business model."
Gate Gourmet, an airline catering business, will pay $5 million to take over Munchery's commercial kitchen in San Francisco. Full Story
from Industry Operations https://ift.tt/2H4yQpJ
No comments: