Regional Distributor Acquires Boxed
Boxed Inc., which filed for Chapter 11 bankruptcy in early 2023 and went up for auction in June, has been acquired. Privately held regional company MSG Distributors made a deal to take over the online bulk delivery company and aims to revitalize the business through its existing infrastructure.
Going forward, Farmingdale, N.Y.-based MSG Distributors will serve Boxed customers, vendors and brands. According to the distributor, former Boxed users can benefit from fast delivery for brands they have bought before through the service and also gain access to a catalog of new items and brands.
[Read more: "Hilco Streambank Accepting Bids to Acquire Boxed’s Assets"]
“This acquisition strengthens our inorganic growth strategy and diversifies our distribution models nationwide. The loyalty and trust that customers and brands have in Boxed is priceless, and we are committed to continue this model of offering bulk-sized products to customers at wholesale prices," remarked Mark Gadayev, MSG’s president.
According to Gadayev, the acquisition will help MSG enhance its own capacity for processing and distribution. “In conjunction with our growing operations and patented innovations for distribution and warehouse management, the future of Boxed.com is bright, and the team at MSG is committed to ensuring that Boxed.com remains the go-to destination for customers seeking quality brands, and exceptional customer service," he said.
Boxed was founded in 2013, providing direct delivery of bulk pantry household products and other items to consumers and other businesses without a membership fee. The company also created its own private label brand, Price & Spring.
Established in 2003, MSG operates distribution sites in New York, Florida, Texas and Calfornia. Among other products, the company distributes several lines of natural foods and sports nutrition offerings.
The quick rise of ultra-fast e-commerce startups has been blunted by recent downsizings and bankruptcy filings in that space. Russian-based Buyk shuttered its operations, while Turkish firm Getir, even after taking over some parts of the Berlin, Germany-based Gorillas service, announced closings and belt-tightening earlier this year.
