E-commerce firm Boxed files for bankruptcy and sells eye software unit

Boxed filed for Chapter 11 bankruptcy protection and continued to sell its software business, the e-grocery platform said on Sunday, adding that it would also wind down its retail operations in the coming weeks.
The plan to sell Spresso, its Software-as-a-Service division, follows the company’s announcement last month to explore options for raising capital.
“This was an incredibly difficult decision that we came to after careful evaluation and exhausting all available options,” CEO and co-founder Chieh Huang said in a statement.
The company intends to fund its short-term operations and cover administrative costs through access to its cash collateral as it liquidates, Boxed said.
The Spresso business will be sold to first lien providers and customers will not face service disruptions during the process, the online platform said.
The bankruptcy filing comes weeks after Boxed said it was holding most of its cash deposits and other liquid assets in accounts at the failed Silicon Valley bank.
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