HelloFresh Disputes Short Seller’s Claims Amidst Share Plunge

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HelloFresh Disputes Short Seller's Claims Amidst Share Plunge

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Meal-kit delivery service HelloFresh SE faced a substantial decline in its share price on November 6, 2025, following the release of a critical report by short seller Grizzly Research LLC. The report alleged that HelloFresh’s fundamental business was in “steep decline” as customer demand for meal kits has waned since the COVID-19 pandemic. Grizzly Research further claimed that HelloFresh’s management was prioritizing self-enrichment at the expense of shareholders and raised concerns about CEO Dominik Richter’s share pledges for real estate investments.

HelloFresh swiftly and strongly refuted the report’s findings, stating on November 6, 2025, that it “strongly disagreed with the interpretation” of its governance and business prospects. The company specifically addressed allegations concerning CEO Dominik Richter, calling them “largely inaccurate” and a “gross misrepresentation” of his share transactions. HelloFresh clarified that liquidity from recent share pledges was used to finance additional purchases of HelloFresh shares, demonstrating Richter’s long-term confidence in the company. They also stated that Richter has not sold any HelloFresh shares in the past five years and currently holds more shares than in the last decade.

The company also countered claims about its business model failing, highlighting its efficiency strategy and customer satisfaction metrics. HelloFresh emphasized that its governance and transparency practices are robust and in line with regulatory requirements for publicly listed companies in Germany. Despite the company’s rebuttal, the initial report led to a significant drop in HelloFresh’s stock, though it recovered most of its losses later the same day. The meal-kit sector, including HelloFresh, experienced a boom during the pandemic but has faced challenges with slowing demand and increased marketing costs in the post-pandemic environment. HelloFresh reported an 11% decline in revenue during 2025 and anticipates a further fall of up to 6% in 2026.

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