The meal-kit delivery company Hellofresh experienced a dramatic stock market decline on Monday, with shares plummeting nearly 10% to close at €11.835. The sharp downturn followed reports from the U.S. Department of Labor investigating potential employment of minors at a production facility in Aurora, Illinois. Hellofresh swiftly denied the allegations, emphasizing that neither the company nor its subsidiary Factor directly employed minors. The company clarified that the investigation centered solely on a now-terminated temporary staffing agency, marking a significant setback for the stock which had been steadily gaining ground since late June.
Company Emphasizes Compliance Measures
In response to the allegations, Hellofresh highlighted its robust control mechanisms and comprehensive ethics and compliance program. The company maintains detailed protocols to prevent child labor across all its locations. Market Analysts view the stock’s sharp decline as disproportionate, noting that the federal investigation primarily targets the former staffing provider rather than Hellofresh itself, while maintaining optimism about the company’s long-term prospects despite current market turbulence.
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Hellofresh Stock: New Analysis – 11 December
Fresh Hellofresh information released. What’s the impact for investors? Our latest independent report examines recent figures and market trends.
Read our updated Hellofresh analysis…
The meal-kit delivery company Hellofresh experienced a dramatic stock market decline on Monday, with shares plummeting nearly 10% to close at €11.835. The sharp downturn followed reports from the U.S. Department of Labor investigating potential employment of minors at a production facility in Aurora, Illinois. Hellofresh swiftly denied the allegations, emphasizing that neither the company nor its subsidiary Factor directly employed minors. The company clarified that the investigation centered solely on a now-terminated temporary staffing agency, marking a significant setback for the stock which had been steadily gaining ground since late June.
Company Emphasizes Compliance Measures
In response to the allegations, Hellofresh highlighted its robust control mechanisms and comprehensive ethics and compliance program. The company maintains detailed protocols to prevent child labor across all its locations. Market Analysts view the stock’s sharp decline as disproportionate, noting that the federal investigation primarily targets the former staffing provider rather than Hellofresh itself, while maintaining optimism about the company’s long-term prospects despite current market turbulence.
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Fresh Hellofresh information released. What’s the impact for investors? Our latest independent report examines recent figures and market trends.