There's nothing embarrassing about making a profit, but there is something embarrassing about continuing to rack up debts you know you won't be paying. A restaurant owner is taking a big risk in setting up shop - food businesses are super likely to fail as it is. There's no need to make excuses for well-funded companies operating irresponsibly and actually stealing from the small businesses they market themselves as promoting.

Munchery could have done much better here on at least two counts.

1) Letting their vendors know that they are shutting down (Munchery didn't even send an email to their vendors, but they did to their customers as mentioned in the article).

2) As part of 1), cancelling existing orders with existing vendors.

According to several former employees, Munchery also stiffed vendors in LA and Seattle when they shut down there years ago. Some of them have still not been paid, even though Munchery raised more money and continued to operate in San Francisco. A vendor in LA was owed 150k, Munchery agreed to a payment plan, and then just stopped paying when they still owed 100k. This is a pattern of not paying bills and continuing to rack up debts without the money to pay it off. The companies that delivered their goods to Munchery as promised shouldn't have to pay for Munchery's dishonesty and poor management.