Blue Apron Holdings Inc (NYSE:APRN) has announced that Matthew Wadiak has stepped down from his position as chief operating officer, just one month after the company’s IPO.
The company revealed the executive shake up in a recent press release stating that Wadiak will no longer assume the role of COO. The announcement also revealed that he had been shifted to an advisory role. The announcement led to a 1.33 percent decline in the value of the company’s stock during after-market trading, thus wiping out the progress made during the regular trading hours. This signifies that investors were a bit pessimistic about what has been going on in the company since the IPO, especially because Wadiak is one of the co-founders of the firm.
“His contributions to the company have been immeasurable and we thank Matt for his unwavering dedication over the past five years,” stated Matt Salzberg, the CEO of Blue Apron.
Blue Apron did not give any reasons behind the move, though Wadiak was not the only person affected by the executive shake up. The company also revealed that Tim Smith will be the new senior vice president and general manager of consumer products. The position happens to be a new one for the company and will focus on innovation and supply chain at the firm. He will also report directly to the CEO.
Pablo Cussatti will retain his position as senior vice president though he will start reporting directly Salzberg as per the recent reshuffle. The past month has been quite tough on the firm especially because the IPO did not turn out as great as they expected. This has been linked to the fact that retail giant Amazon.com, Inc. (NASDAQ:AMZN) announced plans to purchase Whole Foods Market, Inc. (NASDAQ:WFM). However, Wall Street analysts have a bullish expectation on the company’s stock, thus suggesting that they expect the stock to have an upward trend.
Some analysts seem to be on the fence about Blue Aprons and have described the stock as a bargain.
Blue Apron stock closed the latest trading session on Tuesday at $7.50 after a 1.21 percent gain from the previous close.