Honestbee Owes Over US$180M To Collectors – To Axe One other 38 Workers As Half Of Restructuring

Singapore startup honestbee has been making waves within the headlines following its alleged money crunch and a number of management adjustments.

All of its co-founders — Isaac Tay, Joel Sng, and most not too long ago Jonathan Low — have all left the agency.

Ong Lay Ann has additionally taken over Brian Koo as the brand new CEO as of 15 July 2019.

Following these information, honestbee has submitted an utility to the Excessive Courtroom to oversee its restructuring course of because it seeks six months of reprieve from collectors.

Collectors embody its key backer Formation Group, associates of Brian Koo, the managing associate of Formation and present chairman of honestbee.

In line with Enterprise Occasions, the agency owes over US$180 million (S$247.7 million).

Honestbee has launched a press release at this time (2 August) stating that it goals to restructure its liabilities and search a moratorium towards enforcement actions and authorized proceedings.

The agency added that this transfer will assist it to re-evaluate its enterprise and convey down the associated fee construction with out interference.

Extra Workers To Be Laid Off This Week

As a part of the restructuring course of, honestbee has confirmed that it is going to be shedding 38 staff in Singapore this week.

The affected staff can be from operations and engineering.

Because of our lowered operations globally, the corporate has decided to rightsize the corporate in an effort to reduce prices and streamline its enterprise. 38 staff can be affected in Singapore.

Their departures usually are not reflective of their efficiency, however relatively because of the restructuring of our enterprise operations in Singapore. The transfer is important to make sure that the corporate has the appropriate construction in place for long-term stability and success.

– honestbee

Again in April, honestbee has laid off 10% of its world headcount, a rise from the aforementioned 6%.

The agency has additionally confirmed employees wage delays regardless of promise of “well timed fee”.

One former worker informed Vulcan Put up that the agency defined that the delay was as a result of “the cash they have been anticipating didn’t are available”.

She didn’t elaborate what this “cash” referred to, however it extremely seemingly factors to a confirmed new spherical of funding.

In an organization townhall session on July four, honestbee stated that two rounds of contemporary funds can be injected into the corporate inside the subsequent two weeks.

Featured Picture Credit score: honestbee