HelloFresh Shares Recover After Grizzly Releases Short Report

HelloFresh SE shares recovered most of their losses following a steep drop when short seller Grizzly Research LLC published a report that questioned its management and business model. The German subscription meals firm rejected the criticism.

Grizzly said Thursday its findings suggest HelloFresh’s fundamental business is in “steep decline” as demand from customers for meal kits waned after the Covid-19 pandemic. The report alleged that HelloFresh Chief Executive Officer Dominik Richter funneled cash from the company into real estate investments managed by his brother, Benedikt Richter.