Boxed Bought From Bankruptcy by Distributor

Boxed.com is getting a second chance, with regional distributor MSG buying up the beleaguered online bulk food and household goods provider, the company announced today.

Terms of the all cash transaction were not disclosed. The deal includes Boxed.com as well as other intellectual property portfolios and affiliates

Boxed declared bankruptcy earlier this year, after finding it was unable to turnaround net losses and deliver results for shareholders. It was a far cry from its heyday in 2018, when the company reportedly turned down a $400 million acquisition offer from Kroger. After fellow ecommerce player Amazon bought Whole Foods, the company raised $110 million later in 2018 at a $600 million valuation.

The retailer then went public in 2021 after merging with blank check company Seven Oaks. Last January executives told investors the company was considering a sale, subsequently raising $20 million to fund operations. However, it wasn’t enough and in March the company warned of an impending bankruptcy, which ultimately came to fruition in early April. Soon after it announced that Spresso, its proprietary technology platform for retailers, had been sold, but the retail side of the business was still up for grabs until now.

Privately held MSG is a 20 year-old national distributor focused on natural and sports nutrition goods, with its website listing brands such as Long Island Iced Tea, Amazing Grass, Protes, Red Bull, Zing and RxBar. The company has distribution centers in Florida, Texas, California and Farmingdale, New York (the latter also serving its headquarters), and also offers DSD services to New York City’s five boroughs and Long Island. In a press release MSG president Mark Gadayez said the pickup “strengthens [the company’s] inorganic growth strategy and diversifies [its] distribution models nationwide.”

According to the press release, and an FAQ on the Boxed website, MSG plans to relaunch the business later this year. The company cited its existing distribution and warehousing facilities as vital assets in bringing Boxed online again quickly. While promising the return of many of the “established” household brands Boxed once sold, the company said customers should expect to see “new and up and coming brands” as well.

“In synergy with this acquisition, MSG will further enhance its capacity for processing and distribution to Boxed customers nationwide,” Gadayez said. “In conjunction with our growing operations and patented innovations for distribution and warehouse management, the future of Boxed.com is bright.”