Earlier this year, Blue Apron Holdings Inc. executives traveled the U.S. selling potential investors on the meal kit company’s coming initial public offering. They talked up triple-digit growth and plans to expand the business to millions more people who like to cook but would rather not shop. Blue Apron's IPO was going to be a moment to celebrate—validation for the mushrooming food delivery industry.
Behind the scenes, however, all was not well. A new fulfillment center was months behind schedule and still wasn’t ready for prime time six weeks before the IPO. The company had already postponed the listing once in case high marketing costs spooked potential investors. Losing money, Blue Apron was struggling to attract customers amid rising competition, risks it highlighted in a filing. Still, executives and their advisers, led by Goldman Sachs, Morgan Stanley, Citigroup and Barclays, decided to proceed with an IPO.
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