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Blue Apron ends strategic review process, sees major pickup in business

FILE PHOTO: The logo of Blue Apron is shown on screens above the floor of the New York Stock Exchange before the company's IPO in New York, U.S., June 29, 2017. REUTERS/Lucas Jackson

(Reuters) - Meal-kit delivery company Blue Apron Holdings Inc APRN.N said on Thursday its board has concluded a review of its strategic options, after raising cash and seeing an improvement in its business during the COVID-19 pandemic.

New York-based Blue Apron, which went public in 2017, said in February it is considering options including going private and a sale of the company or some of its assets, following rising competition.

“Since late March 2020, Blue Apron has experienced increased demand for its meal kits reflecting, in part, changes to consumer behavior in response to the COVID-19 pandemic,” the company said.

Blue Apron in August completed an underwritten public offering, generating about $33 million, before entering into a new $35 million senior secured term loan earlier this month.

The company on Thursday posted a 13% increase in third-quarter net sales, as customers, now avoiding venturing out to restaurants due to fears of contracting the new coronavirus, ordered more of its meal kits.

Blue Apron also projected its fourth-quarter net revenue to grow about 15% to 19% from a year earlier.

Reporting by Praveen Paramasivam in Bengaluru; Editing by Bernard Orr

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