Shares of Blue Apron plummeted more than 15 percent on Tuesday after the meal-kit service’s CEO said the company’s new fulfillment center in Linden, New Jersey, was a drag on profits.

“Today Linden is performing as our worst margin operating center because it’s very new,” CEO Matt Salzberg said during the RBC Capital Markets Technology, Internet, Media and Telecommunications Conference, according to Dow Jones.

A Blue Apron spokeswoman confirmed the report was accurate.

CFO Brad Dickerson said that Blue Apron experienced “unexpected costs” as it closed its previous facility in Jersey City, 15 miles down the road. Dickerson said that the company is still training hundreds of workers and the center could take months to be fully operational.

Blue Apron shares have struggled since debuting on the New York Stock Exchange in July. The company, which had an IPO price of $10 per share, briefly saw its stock hit $11 before it began a steady decline. The stock has since fallen more than 72 percent to $3.23.

Source: Tech CNBC
Blue Apron shares plummet to new low as new fulfillment center costs chip away at profits