As the meal kit delivery industry struggles to become a regular staple in America's dinner routine, a national meal kit company is shuttering its Illinois office.
Sun Basket, a San Francisco-based meal kit startup founded in 2014, is leaving its location in downstate Valmeyer. The company reported more than 270 layoffs with the closure of the facility, which it was required to disclose under the Illinois Worker Adjustment and Retraining Notification Act.
Last year, Sun Basket opened its Valmeyer office in Rock City, an underground cave city just south of St. Louis that's equipped with city streets and lighting. As of last year, about 500 employees worked in Rock City. The U.S. government's national archive office is among the tenants in the underground space.
Sun Basket will close its Valmeyer location on Aug. 7, according to the Republic-Times. The company said it's closing the office to help increase profitability.
The closure comes at a tumultuous time for the meal kit delivery industry. Market leader Blue Apron's stock has plummeted since it went public in 2017, with a market cap today around $95 million. It had raised around $200 million in venture capital, and was valued at just under $2 billion in its last round of private financing.
Last year Chef’d, a Los Angeles-based meal kit startup, shut down. Munchery and Sprig, two other meal delivery startups, have also shuttered.
However, not all meal kit makers have struggled. Plated found a buyer in Albertsons, who acquired the New York City startup for around $200 million. And Chicago-based Home Chef was acquired by Kroger in a deal worth up to $700 million.
Sun Basket has raised more than $143 million in funding. It was founded by Adam Zbar and Justine Kelly, the former head chef at James Beard Award-winning restaurant the Slanted Door.
