Honestbee lays off most of its staff as it struggles to secure funding
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Singaporean delivery firm Honestbee has laid off around 80 percent of its staff as it searches for funding to remain trading.
According to DealStreetAsia, the startup has dropped around 100 employees – including both local and foreign staff – and salaries will be delayed until further funding can be secured.
Its futuristic grocery store business Habitat has been closed for a full month and will reportedly shift to smaller premises.
“Due to several external commercial pressures that have resulted in the protracted closure of Habitat by Honestbee, the company has made the strategic decision to reduce its staff force,” read a statement from the firm. “As a result, the company has decided to reduce its non-core staff as it does not foresee operating Habitat in its full strength over the next few weeks.”
The firm had been anticipating a cash injection of around $50 million from an unidentified retail conglomerate, although that deal has failed to materialize following the advent of the coronavirus epidemic.
Honestbee is currently moving to restructure itself out of a debt of about $230 million, including salaries to more than 200 former staff members. It is currently trading under court protection from its creditors.
Questions & Answers
Q.Why has Honestbee laid off such a large proportion of its staff?
Why has Honestbee laid off such a large proportion of its staff?
Honestbee has laid off approximately 80 percent of its staff because it is struggling to secure funding to continue trading. This decision was also influenced by 'external commercial pressures' and the closure of its Habitat store.
Q.What is the current financial situation of Honestbee?
What is the current financial situation of Honestbee?
Honestbee is restructuring to manage about $230 million in debt, including overdue salaries for former staff. The company is currently operating under court protection from its creditors while it seeks new funding.
Q.What has happened to Honestbee's grocery store business, Habitat?
What has happened to Honestbee's grocery store business, Habitat?
The Habitat grocery store has been closed for a full month. Honestbee plans to reopen it in smaller premises, as it does not expect to operate the store at full capacity in the coming weeks.
Q.Why did Honestbee's anticipated funding deal fail to materialise?
Why did Honestbee's anticipated funding deal fail to materialise?
A cash injection of around $50 million from an unidentified retail conglomerate did not materialise. This deal fell through following the emergence of the coronavirus epidemic.
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