The company approved a 1-for-7 reverse stock split to fortify its NYSE listing ($SVU) and give suckers...we mean, investors, the impression that the company is in better shape than it actually is. In its Q1 earnings report, the company highlighted a boost to its wholesale business (to be served, in part, by an acquisition made out of the Central Grocers bankruptcy); it also attempted to assuage any concerns arising out of the potential lost Marsh Supermarkets volume (even as it kept 15 stores of business with the new owner). The company is launching meal kits (how effed is Blue Apron?) and grab-and-go meals.
NYC-based food delivery startup Maple announced that it has closed, transferring tech (and employees) to Deliveroo, a UK-based food delivery company. There is a ton of talk about food delivery - we're just as guilty of it as anybody - but the truth remains: in the absence of a compelling and lasting exit, the whole idea/model is still highly speculative. The company had raised $29mm in VC from investors as illustrious as Joshua Kushner's Thrive Capital - the most recent funding just two years ago at a $115mm valuation (yes, there was some venture debt in the mix as well...shocker!). Maybe Thrive should have brokered an exclusive food delivery deal to the visitors of Mar-a-Lago. Meanwhile, the failure of Maple and the recent recap of Munchery probably help explain why grocery delivery is surpassing food delivery in funding. Given the recent pain grocers have been suffering - see Marsh Supermarkets (below), Central Grocers, and Southeastern Grocers (closing 20 locations) - this would appear to be a positive sign.