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Chinese grocery e-commerce platform Missfresh said in a statement on Thursday that the company had business and organizational adjustments and some staff have been told to leave.
The company is actively seeking all possible solutions to safeguard its employee’s rights, it added.
The statement came after information on Missfesh’s App shows that its 30-minute express delivery services have been closed and it now only provides next-day delivery services.
Chinese mainland media reported that in the period of June 30 – July 2, Missfresh closed this express delivery business in nine Chinese cities including Shenzhen and Shijiazhuang. The company said in response that it temporarily suspended express delivery business in the cities where consumers can no longer buy fresh profucts.
US-listed shares of Missfresh slumps more than 40% in the premarket trading in the US.
Missfresh had an IPO on the Nasdaq in June 2021 at an offer price of $13 per share, but since then, the stock has tumbled by nearly more than 95% to $0.2355 at market close on Wednesday.
The company’s financial reports showed that Missfresh lost 2.23 billion yuan in 2018, 2.9 billion yuan in 2019 and 1.65 billion yuan in 2020, recording a total of nearly 7 billion yuan loss in the three years.
