Just days after confirming that it had canceled its initial public offering, NetGrocer has cleared its shelves, cutting workers and naming a new CEO.
"Daniel Nissan, former president and CEO of the company, has ceased to be employed by NetGrocer," the company said in a terse statement yesterday. Nissan will be replaced by Frederick Horowitz who was described by the company as "a shareholder with a consumer product merchandising background."
The management change was unrelated to the IPO cancellation, according NetGrocer spokesman Jeffrey Steinberg.
The company also moved to layoff part of its workforce, but would not discuss the extent of the cuts.
"It was part of our plan if the IPO did not go through to try to cut the burn rate of the company," Steinberg said. "Unfortunately that meant letting go of some people in order to secure private equity."
Horowitz will act as interim president until NetGrocer names a successor. He is president of Sales Marketing Group, a private consulting firm. He previously served as president of USA Detergents.
Earlier this week, NetGrocer canceled its IPO, citing market conditions. It had filed for an IPO in July worth $38 million. The company is now in the process of securing private placements from several groups of equity funds, according to Steinberg.
An IPO is still a possibility if market conditions and the company's fortunes improve.
"The ultimate goal is to build out NetGrocer, but right now we need to focus on securing private placements," Steinberg concluded.
The New York company sells nonperishable groceries, toys, houseware and other items. It claims to offer products at "up to 20 percent less than supermarket prices."
Reuters contributed to this report.