Meal-kit company Blue Apron is closing a facility in New Jersey and said that about 470 workers may lose their jobs if they don't chose to transfer to another facility in the state.
The corporation, which became a public company about a month ago, said Friday that it offered the 1,270 workers at a Jersey City, New Jersey, facility the option to transfer to a new facility in Linden, New Jersey.
'We’ve been letting staff in Jersey City know for a few months that they can transfer to the new facility,' Blue Apron’s Head of Communications, Nisha Devarajan, told Business Insider.
470 employees at Blue Apron may lose their jobs after the company says it wants to close a New Jersey facility (Pictured Blue Apron founders: Ilia Papas , Matt Salzberg and Matt Wadiak)
The company said that they offered all the workers an opportunity to transfer (Pictured: CEO Matt Salzberg)
'A majority decided to transfer over and our hope is that everyone stays with the company,' Devarajan added.
Blue Apron said about 800 workers asked to transfer and that it expects more to do so before the October deadline.
The company had more than 5,200 employees at the end of March.
The company said in February that it expects to employ about 2,000 people in the new Linden facility.
On Friday, Blue Apron Holdings Inc.'s stock fell 6 percent to close at $5.83.
The New York company's shares are down 42 percent since they first began trading on the stock market at the end of June.
The Jersey City, New Jersey facility (pictured) will be shut down in October, and a new facility will be opened in Linden, New Jersey at the beginning of next year.
The company was first established in 2012 Matt Salzberg (CEO), Ilia Papas and Matt Wadiak, packing and shipping the first 30 orders themselves from a commercial kitchen based Long Island City, New York.
On June 29, the company went public and sold off 30 million shares at $10 dollars a share.
But in less than three weeks since the public offering, 'Blue Apron's stock has lost nearly 40% in value,' leading to attorneys at the law firm of Harwood Feffer LLP to open an investigation, according to PR Newswire citing a July 18 statement by the firm.
The law firm is looking into whether the meal kit company's 'board breached its fiduciary duty to investors, grossly mismanaged the Company, and/or committed abuses of control.'
An email to Blue Apron seeking comment was not immediately answered.
Blue Apron says it expects to employ 2,000 workers at the new Linden, New Jersey facility
Blue Apron has seen shares decrease 40% in value since going public last month