As warehouse club-like eCommerce startup Boxed talks with potential buyers, the executive behind its fastest-growing business segment has left the firm. Behzad Soltani, who led the company’s B2B unit, is taking another C-level position elsewhere, Recode reported.
A spokesperson for Boxed confirmed Soltani's departure.
“Behzad Soltani decided to leave the company and pursue other opportunities,” he said. “We wish him all the best. In his time with Boxed, he helped build a dedicated team focused on serving the needs of B2B customers across the United States.”
Soltani came to Boxed after working for both coffee products company Keurig and office supply chain Staples. Boxed announced his appointment as a vice president in July. Heather Mayo, formerly Boxed’s chief merchandising officer, also departed the startup in the fall. She previously worked for Sam’s Club and left Boxed after only one year.
Soltani’s departure comes as Boxed has held potential sales talks with Kroger and Amazon. The New York Post reported Kroger had made an offer of between $300 and $400 million for the company during the past two weeks, which Boxed rejected.
Though the report did not offer details about an offer from Amazon, Forbes reported the startup is holding out for a sale price of closer to $500 million. The publication also noted that brick-and-mortar retailers are interested in leveraging Boxed to increase their eCommerce offerings, offering the advantages of 24-hour delivery and access to its high-tech distribution centers.
Boxed has been called the “Costco for millennials” because it sells items in bulk, uses fresh food from Costco and sells the company's Kirkland private label products. Sources told the Post that the Boxed CEO had hoped to get a bid from Costco, but nothing has surfaced as of yet.
Boxed boasts approximately $100 million in sales and roughly 280 employees. Both Boxed and Amazon declined to comment on the Post’s story.