Buyk’s primary investors are from Russia and now, with sanctions on Russian banks, have cut off the company’s capital.
A quick-delivery grocery service operating in New York City shuttered operations, furloughing the majority of its employees after Russian sanctions cut off the company's source of funding.
Buyk is one of roughly a half dozen start-ups to emerge in the city's growing quick commerce business. They promise delivery of essential grocery items in 15 minutes or less.
Sanctions levied against Russia has cut off the company off from its primary investors and forced the furlough of 98% of its staff.
Without its team of delivery workers, Buyk has suspended operations.
Two furloughed employees spoke to NBC New York on the condition of anonymity.
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"The company made it very clear that we would be taken care of, we would be paid in full," one of the employees said. "If we had benefits, we could claim those to the end of the month until things started coming back together and they could start rehiring us."
In a statement, Buyk's CEO called the shutdown "temporary," and said the service will be back up and running as soon as it can "secure funding from U.S. sources."
"As of today, our assets still greatly exceed our liabilities, and we remain confident that Buyk’s proven ultrafast grocery model can make real-time retail a reality in the United States," CEO James Walker said in a statement.
