Blue Apron installs new CEO as post-IPO doldrums continue

Struggling meal kit maker Blue Apron Holdings Inc. installed Chief Financial Officer Brad Dickerson as Chief Executive on Thursday, pushing out co-founder Matthew Salzberg.

The change in top executives comes after a tumultuous introduction to Wall Street, as Blue APRN, +0.00%  hares have fallen more than 70% from the price commanded in a June initial public offering. Most recently, the company posted weak third-quarter results that included a wider-than-expected loss, reduced full-year estimates and a declining customer count.

See also: Why Blue Apron shares are tanking yet again

“I will continue to serve the company as Executive Chairman, and believe that acting in this capacity is the best way for me to contribute to Blue Apron’s success,” Salzberg wrote in a letter to employees. “… As a business, what we have accomplished is also incredible—with few companies ever achieving what we have in just 5 short years. We pioneered an entirely new category of products, and have consistently been the #1 brand in terms of awareness and market share.”

Salzberg will remain a Blue Apron employee with a salary of $470,000 for at least the next year, and Blue Apron elected to grant Salzberg $125,000 worth of stock that will vest in a year, according to a filing with the Securities and Exchange Commission.

Dickerson was named chief financial officer at Blue Apron in February 2016, after spending 11 years as an executive at Under Armor Inc. UAA, -2.06%  He spent time as chief financial officer and chief operating officer at the athletic-apparel company.

“We remain confident in our previously stated financial guidance for the second half of 2017, and I believe we are taking the right steps to move the business forward,” Dickerson said in Blue Apron’s announcement.

Despite the company’s troubles, it remains the largest U.S. maker of meal kits, which ship ingredients with recipes that consumers assemble at home.

Blue Apron stock gained 2% to $3.06 after hours. The stock has struggled since it went public at $10 a share, with shares plummeting 44% in the past three months, as the S&P 500 index SPX, +0.82%  gained 6.9%.

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