Brands will be sold one-by-one and will operate individually instead of being under one umbrella.
With the lenders enforcing their charge on the company’s individual brands, the Good Glamm Group will no longer continue as an umbrella entity. The development leads to a brand-by-brand sale, founder Darpan Sanghvi said in a LinkedIn Post.
Sanghvi wrote that the brands will be sold one-by-one and will operate individually instead of being under one umbrella. There will be new individual owners for each of the different brands, he noted. Sanghvi added that he is working closely with the lenders and incoming buyers to facilitate transitions, clear dues and secure placement for employees under the new brand owners.
“Over the past few months, we explored every possible path to keep the Good Glamm Group together as the way we had envisioned, a digital FMCG conglomerate with multiple brands under one umbrella. We explored refinancing, partial brand sales, strategic investments and more. But when you operate in a complex structure with multiple stakeholders, and time as your enemy, sometimes it just does not come together,” Sanghvi wrote in his LinkedIn post.
Over the next couple of months, if the lenders are unable to complete the sale of the different brands, and the employee dues are not cleared, Sanghvi said that he will help the employees out. “I am giving you a personal commitment to each of you, that moving forward, 25 per cent of what I earn (post-tax) from salary or gains from equity in any venture, will go towards making you whole,” he added.
Addressing the vendors, partners and shareholders, he said that he will create a Good Glamm Restitution Fund over the next 60 days which will receive equity allocation from whatever he does next in his journey. This will be directed towards settling any dues that may remain outstanding for the company’s vendors or partners and the losses incurred by the shareholders.
