Daily Harvest threw a superhero-themed party for employees as it was dodging questions about sick customers

• Daily Harvest threw a superhero-themed party as part of a retreat last fall, Bloomberg reported.
• The event came as customers claimed that the startup's French Lentil + Leek crumbles made them ill.
• Daily Harvest's sales have fallen and the company has laid off staff since the claims surfaced.

As Daily Harvest customers were claiming the startup's food made them ill, its employees were getting drunk at a superhero-themed party, according to a new report.

The party was part of a two-day retreat that Daily Harvest held for about 100 employees at a campground in Connecticut last fall, Bloomberg Businessweek reported on Wednesday. The event, called "Harfest," also featured a silent disco and s'mores with vegan marshmallows, Bloomberg reported. The company encouraged employees to post about the event using the hashtag #harfest.

Harfest was attented by Daily Harvest CEO and founder Rachel Drori. At the party, Drori wore a costume inspired by the Green Lantern character, complete with a yellow cape and a shirt with a giant letter G surrounded by recycling arrows, according to the report.

Photos of the event made their way to social media, where Daily Harvest customers who had consumed the company's French Lentil + Leek crumbles reacted poorly. Bloomberg reported that the crumbles sent 130 people to hospitals. About 40 had to have their gallbladders removed, according to the report.

"Gross to see execs who can't update those with mounting medical bills getting trashed," one Twitter account, @poisonedbyDH, wrote after seeing the photos, per Bloomberg. 

"Like many businesses, Daily Harvest had an annual retreat to discuss business priorities as well as build camaraderie and collegiality among the team," Daily Harvest told Insider. "It is disappointing — and falsely accusative — to reference such team-building games or activities in order to wrongly make it appear as if Daily Harvest has a cavalier attitude towards its business or its customers."

Daily Harvest, which Drori founded in 2015, made a name for itself by selling frozen foods that can be used to make smoothies, soups, and other meals. 

Social media, particularly Instagram, was a key part of the company's growth strategy.

Bloomberg's report says Drori made Daily Harvest's Instagram Stories strategy her main focus in 2016, a claim that the company disputes. Under Drori's leadership, Daily Harvest started working with influencers to promote its food. The company also held Friday activities for employees at its offices that were meant to be posted to social media, such as a guacamole challenge, Bloomberg reported.

But after customers started claiming the lentil crumbles made them ill, some of those influencers parted ways with the startup, Insider reported last year. The company's sales have since declined, and its has conducted two rounds of layoffs, per Bloomberg.