Singapore startup, Honestbee is on the verge of collapse. The startup is currently alleged of a cash crunch. Besides, it has done multiple leadership changes.
Honestbee is a Singapore based startup. It offers online grocery and food delivery services as its core business. Besides, it also provides a concierge and parcel delivery service.
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According to Business Times, the firm owes over US$180 million (S$247.7 million).
Therefore, Honestbee has submitted an application to the High Court to supervise its restructuring process. Honestbee aims to get six months of reprieve from creditors.
Honestbee creditors include its key backer Formation Group, associates of Brian Koo, the managing partner of Formation and current chairman of Honestbee.
On August 2, Honestbee released a statement. It said that the startup aims to restructure its liabilities and seek a moratorium against enforcement actions and legal proceedings. Moreover, it added that this move will help it to re-evaluate its business. Besides, that will also bring down the cost structure without interference.
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Laid Off Staffs
As part of the restructuring process, Honestbee has confirmed that it has also laid off 38 employees in Singapore this week. They are the staff in operations and warehousing in its supermarket, as well as at its headquarters.
Honestbee stated that their departures are not reflective of their performance. Yet, it is due to the restructuring of our business operations in Singapore. Additionally, they mention that the move is necessary to ensure that the company has the right structure in place. In the long run, Honestbee aims for long-term stability and success.
Honestbee employees have also experienced a delay on their payment, before the layoff. The company mentioned that the delay in ‘funding’ was the main cause.
It did not elaborate what the ‘funding’ referred to. However, it may point to a confirmed new round of funding.
On July 4, Honestbee said that two rounds of fresh funds will be injected into the company within the next two weeks.
