Shares of Blue Apron Holding Inc (NYSE:APRN) resumed their decline after a brief respite as the company ousted its Chief Operating Officer in its first management shake-up as a publicly traded company. As of 11:36 a.m. EDT, the stock was down 6.6%.
The meal-kit provider said that Matthew Wadiak, a co-founder of the company, would be stepping down from the COO post and will transition to serving as a senior advisor. Also, Tim Smith was promoted to Senior Vice President and General Manager, Consumer Products.
The news seemed surprising, coming so soon after the company's IPO. At times, management shake-ups are well received by investors, but in this case, it seems to be viewed as a sign of weakness and disorganization, especially as concerns have mounted about the stock.
I wouldn't read too much into today's management changes, as they could serve to make the company stronger. Investors have largely fled Blue Apron due to a potential threat from Amazon and questions about the company's business model and potential, but it's still early days for the business.
Pay attention when the meal-kit service delivers its first earnings report on August 10. That should offer the best clue yet as to whether Blue Apron can be a lasting disruptive force in groceries, or if it's just a fad.