Honestbee lays off 38 employees in Singapore

Grocery and delivery startup Honestbee is laying off 38 employees as part of its restructuring process. The troubled startup in an announcement last week said it has made an application to the High Court to commence a court-supervised restructuring process, as it seeks a moratorium against any legal proceedings that may be brought against it by creditors. 

The company owes its creditors more than US$180 Mn.   

In a statement, the company stated, “Honestbee has taken this imperative step to protect and preserve the value of its businesses while it restructures its operations across Asia. The move is necessary to ensure that Honestbee has the right structure in place for long-term stability and success”

The 38 employees laid off are mainly in operations and engineering. A company spokesperson stated, “Their departures are not reflective of their performance, but rather due to the restructuring of our business operations in Singapore. The move is necessary to ensure that the company has the right structure in place for long-term stability and success.”

The employees being asked to leave are being asked to serve their notice period as per their contract. As part of its restructuring process, Honestbee will work closely with its advisors, creditors, and stakeholders to achieve the best possible outcome for all interested parties.

The development comes within days of the company announcing the appointment of new CEO Lay Ann Ong, who took over from interim CEO Brian Koo. Ann takes over from interim CEO Brian Koo, whose family controls South Korean technology giant LG. Koo was named interim CEO in May following Mr Sng's departure.

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