Blue Apron Shares Boost After Announcement of New Executives On its Board

Blue Apron Shares Boost After Announcement of New Executives On its Board

Business

Two top executives from Blue Apron are stepping down from the striving company. The company rocketed up more than 15% to $1.12 per share on Tuesday, after the announcement of the CEO’s departure. Brad Dickerson, CEO Blue Apron, has resigned the meal-kit maker to chase new window of opportunity. Linda Findley Kozlowski,45, will hold executive’s position. She recently served as a chief operating officer at Etsy Inc. from May 2016-December 2018. Kozlowski also secured a place at companies like Alibaba Group Holding Ltd. and Evernote Corp. Blue Apron Holdings also announced the departure of another executive. Its co-founder and CTO Ilia Papas, is resigning, and May 3 would be his last of working at the company.

The ingredient-and-recipe meal kit company revealed it has a transition plan in progress, but did not offer any further details. Kozlowski will join the board of directors on Monday. Mr. Dickerson will assist the company being an adviser for some time to help with the transition. Matt Salzberg, the chairman of Blue Apron’s board of directors, said they are incredibly excited to have Linda in their team. He added Linda’s outstanding administration and marketing enterprise would help the company to succeed towards stable and profitable growth. It seems like investors expect the new administration can help the company to recover. As a result, shares of the company boosted instantly after the announcement.

The meal-kit maker has plenty of rivals in the market. The fleet includes Germany-based HelloFresh, Sun Basket, Home Chef, and Plated. In 2017, Blue Apron launched its initial public offering (IPO), since then it is facing a challenging time as a publicly traded company. At the time, it valued at $2 billion at $10 a share, but stocks rapidly dropped after going public. Blue Apron stated its total number of customers decreased by 24% in the same period last year. In Q4 of 2017, it had 746,000 customers, which figured 557,000 in Q4 of 2018. Besides, it lost $23.7 million in the at the same time. The company faced employment losses in an attempt to bounce back. Last year, in November, it declared to reduce 4% of its employees.

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