(Bloomberg) -- E-grocery startup Takeoff Technologies Inc. has filed for bankruptcy, succumbing to a too-rapid expansion of its operations in the face of dwindling demand for online grocery orders.

The Massachusetts-based startup filed for Chapter 11 protection Thursday, listing assets of at least $50 million and liabilities of as much as $50 million. The company said it intends to sell all its assets and is seeking approval to keep operating through the sales process.

Takeoff, which develops automated grocery fulfillment solutions, had been under-performing since the pandemic ended. The company’s revenue dropped by about $13 million from 2022 to 2023 and their operating loss widened to $63 million in the same period, Deputy Chief Restructuring Officer Brett Anderson wrote in a court statement. 

Takeoff’s bankruptcy marks the latest crack in the online grocery industry, which is experiencing rising pressure from investors to demonstrate a better return on capital. Getir, a Turkish delivery startup, in April said it was exploring options including selling off or shuttering assets around the world, as demand for its services subsided after the world emerged from Covid lockdowns.

Founded in 2016 by a group of former grocery executives, Takeoff operated 24 sites in the US, served more than seven grocery company customers across the world, and employed more than 165 people.

The case is Takeoff Technologies Inc., number 24-11106-CTG, in the US Bankruptcy Court in Delaware.

 

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