A Singapore-based startup named Honestbee has come under the radar as its CEO has filed an affidavit which reveals something glaring regarding its operations. We have reported that the company has been struggling with financial issues for a long time. Now, an affidavit filed by Honestbee’s CEO reveals that they owe 217 employees a total of almost USD $1 million in unpaid salary. This means that the company is in huge debts and we are not sure how long the company will run without funds on their hands. Honestbee CEO Ong Lay Ann filed this affidavit on September 20 as part of the startup’s debt moratorium application.
A spokesperson from Honestbee sent an email to TechCrunch revealing that “There is a communicated salary delay for Honestbee’s ex-employees and employees currently serving notice. While there are regular injections of working capital, the amount remains insufficient for all headcount. As a result, the company has made the difficult decision to prioritize existing staff in Singapore. The company has the full intention in meeting its obligations to staff and will be, if not already in active discussions with staff in relation to a feasible payment schedule.”
The statement clearly mentions that they are in a cash crunch and want to prioritize current staff rather than paying ex-employees and employees serving the “notice” period. Honestbee, which is a food delivery service, was operating in eight markets across Asia at one point of time. However, they were forced to stop operations in Hong Kong and Indonesia, temporarily halted services in Japan and the Philippines and suspended its food delivery service in Thailand as per a report.
This affidavit also reveals that Honestbee currently has 190 employees, down from 523 full-time employees and 77 part-time workers in January. Also, the company was already looking for buyers and is still looking for one as the CEO reveals Honestbee chairman Brian Koo resigned from the board on Sept. 12.
