(Bloomberg) -- Capital World Investors has sold its stake in Blue Apron Holdings Inc., a sign that investors are losing confidence in the beleaguered meal-kit delivery company that went public in late June.
Capital World Investors, a division of Capital Group, has fully exited its position in Blue Apron, according to a Friday filing. The investment firm reported a 12.9 percent stake as of June 30, which had made it Blue Apron's second largest investor, according to data compiled by Bloomberg.
New York-based Blue Apron has struggled to convince investors that its products will appeal to more than a niche audience and can also successfully overcome a looming threat from Amazon.com Inc. Since going public, Blue Apron's shares have fallen more than 45 percent. The stock rose 1.3 percent to $5.41 at 2:23 p.m. in New York.
The company sells boxes of fresh food portioned to correspond with enclosed recipe cards and has been working to expand its meal-kit options to attract and retain customers. The June IPO failed to raise as much as originally expected, and Blue Apron has been forced to delay expansion plans.
In its first earnings report, the company revealed that it will need to spend more money on fulfillment centers and will continue to cut back on its marketing budget. Blue Apron has since instituted a temporary hiring freeze and laid off a group of its recruiters. These revelations prompted more concerns about Blue Apron's long-term sustainability and future prospects.
Blue Apron and Capital Group declined to comment.
To contact the reporter on this story: Jing Cao in New York at hcao38@bloomberg.net.
To contact the editors responsible for this story: Jillian Ward at jward56@bloomberg.net, Robin Ajello, Molly Schuetz
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