Blue Apron (NYSE: APRN) CEO Matt Salzberg recently announced his resignation as the meal-kit maker's stock hit fresh lows. Blue Apron was one of the most disastrous IPOs of the year -- it originally priced its offering between $15 to $17 per share in late June, but dismal demand forced it to reduce its initial price to $10. But as the months have passed and the market has gotten more information about the company, it has become clear that was still too high; the stock has since fallen to around $3.

What went wrong?

Blue Apron's public debut came right after Amazon acquired Whole Foods and signed meal-kit partnerships with Martha Stewart and Marley Spoon. Competitors like HelloFresh, which went public in Germany in early November, were also gaining ground. Investors doubted Blue Apron's ability to counter those rivals.

The company's year-over-year revenue growth slowed from 18% in the second quarter to less than 3% in the third; it lost customers; its average revenue per customer fell sequentially; and its net losses widened. In October, it laid off 300 employees (about 6% of its workforce) in a move to stem the bleeding, but that was widely seen as a temporary fix for a more fundamental problem.

What happens now?

Salzberg, who co-founded the company with Matt Wadiak and Ilia Papas, will remain as the executive chairman of the board. CFO Brad Dickerson was appointed as the new CEO, and the company is now seeking a new CFO.

Dickerson stated: "We have an exceptionally talented team at Blue Apron that is focused on taking decisive actions to transform the business, continuing to innovate our product in new and diverse ways, and unlocking future growth opportunities." He also stated that he believed that the organization was "taking the right steps to move the business forward."

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The author(s) may have a position in any stocks mentioned.



Leo Sun has no position in any of the stocks mentioned.

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