CEO of startup with offices in Dubai, Singapore and US issues 'public apology' to employees for unpaid salaries

Darpan Sanghvi

, managing director and CEO of

The Good Glam Group

has issued an apology on LinkedIn, acknowledging the company’s inability to pay its staff on time. The post, shared from the company’s official LinkedIn page, Sanghvi said “Late last year, at the end of our funding cycle, we were on the verge of selling one of our brands, a transaction that would have provided the funds we needed to secure our future.” He further added that everything was done, “but just before we could sign and secure Good Glamm, the CEO of the acquiring company stepped down at the last moment, and the deal fell through.” According to reports, the startup has delayed the April salary of around 150 employees across key functions — including branding, sales, technology, and product development. It has implemented several major cost-cutting steps, including closing its Mumbai office in Kurla West and permanently shutting down its Delhi office in Vasant Kunj. Several former employees have reportedly not received official experience letters. They have reportedly held on to company-issued laptops until their pending dues and documents are cleared.“It was a gut punch out of nowhere that sent us scrambling for funding and securing a lifeline,” wrote the CEO of the startup with offices in India, Dubai, Singapore and the US. “This set off a chain of financial strain resulting in salary disruptions and operational payment disruptions that directly impacted business and made generating cash flows hard. And raising money even harder,” he wrote in the post.

Here’s what Darpan Sanghvi wrote on LinkedIn

This is not an easy post to write. And to be completely honest, I am not sure exactly how to say what I want to say, but I’m going to try. So let me start here.Late last year, at the end of our funding cycle, we were on the verge of selling one of our brands, a transaction that would have provided the funds we needed to secure our future. Everything was done, but just before we could sign and secure Good Glamm, the CEO of the acquiring company stepped down at the last moment, and the deal fell through. It was a gut punch out of nowhere that sent us scrambling for funding and securing a lifeline. This set off a chain of financial strain resulting in salary disruptions and operational payment disruptions that directly impacted business and made generating cash flows hard. And raising money even harder.Since then, we have been trying everything possible to generate cash to pay our employees, and also keep the business operational, so that we are able to raise funds to bring the business back on its feet.Having said that, as days have turned to weeks and weeks into months, everyone’s frustration has grown. We’ve been sending regular updates via email, but the progress is slow, and that has understandably compounded the collective frustration. To everyone reaching out with personal queries, me and our current team, though far smaller than before, is doing everything we can to respond to personal queries. There may be delays, but we are here for you and doing our best.The road ahead won’t be easy, and it won’t be overnight. I’m doing everything in my power to bring this to a resolution. There are several restructuring discussions underway in conjunction with our lenders. As we make progress, I’ll continue to share updates.And finally, to my team and to every stakeholder who believed in Good Glamm, I am truly sorry. I never imagined, even in my worst fears, that we’d be here. This company has been my life’s work, and I know you gave it all your energy and your heart. I carry this with me every day. It is my moral responsibility to resolve this for every past and present employee, and for every stakeholder (whether its our lenders, vendors and our equity shareholders) and set things right, and I promise you: I will not stop until I do.Sincerely,Darpan