Failed meal-kit service Munchery owes $6M to gift card holders, vendors

Several weeks after a sudden shutdown left customers and vendors in the lurch, meal-kit service Munchery has filed for bankruptcy. In the Chapter 11 filing, Munchery  chief executive officer James Beriker cites increased competition, over-funding, aggressive expansion efforts and Blue Apron’s failed IPO as reasons for its demise. Munchery owes $3 million in unfulfilled customer gift cards and another$3 million to …

Former Munchery employees sue company, blame CEO for shutdown

The Munchery  saga continues. In a new class-action lawsuit, former Munchery facilities worker Joshua Philips is claiming the startup owes him and 250 other employees 60 days’ wages, citing The Worker Adjustment and Retraining Notification Act, a U.S. labor law that requires employers with an excess of 100 employees to give notice 60 days ahead of mass layoffs. Munchery, …

After an abrupt shutdown, Munchery’s small business vendors are the ones picking up the bill

Munchery’s vendors claim the food delivery startup took advantage of them in its final hours, knowingly allowing them to continue making deliveries it couldn’t pay for. Earlier this week, Munchery  surprised customers with an email announcing it would cease operations, effective immediately. It did not, however, notify any of its vendors of the news, according to the owners of several …

After raising $125M, Munchery fails to deliver

On-demand food delivery startup Munchery  is ceasing operations effective immediately, the startup announced in an e-mail to customers on Monday. Founded in 2010, the San Francisco-based business had raised a total of $125 million in venture capital funding, reaching a valuation of $300 million with an $87 million round in 2015, according to PitchBook. Munchery was backed …

Munchery shuts down operations in LA, New York and Seattle

Munchery,  the on-demand food delivery startup, has shut down its operations in Los Angeles, New York and Seattle, the company announced on its blog today. That means the teams from those cities are also being let go. In total, 257 people (about 30 percent of workforce) were let go, according to a Munchery spokesperson. “We recognize the …