Honestbee Megastore - from boom to doom

[Jman888]

lesson learnt......build up a startup, once some "angel investor" comes in to buy you out, just take money and scram. Don't wait till it start falling to pieces then get kicked out unceremoniously.

 

Not every startup is a facebook/instagram

i think there is a minimum period the owner needs to stay around, i think he probably too bo chap until they cannot tahan.

[Jman888]

too small to compete with the other big players.

 

Honestbee to stop food delivery service in Singapore

15 May 2019 11:28AM (Updated: 15 May 2019 02:09PM)

 

SINGAPORE: Honestbee will stop its food delivery service in Singapore as part of a strategic review of its business, the company announced in a media advisory on Wednesday (May 15).

 

It will also suspend its laundry service, honestbee confirmed, with both services set to stop on May 20.

 

About 400 delivery staff, many who work part-time, will be affected by the company's latest move since co-founder Joel Sng stepped down as CEO earlier this month.

 

Its grocery delivery service and physical supermarket, habitat by honestbee, will continue to operate, the company said.

 

"The decision was made to optimise the business structure, and to drive better focus and alignment with honestbee’s current strategic priorities," the firm added.

 

"Although many delivery bees are part-timers, they have played a key role, and have been a critical part of the honestbee family. The headcount in Singapore remains unaffected.

 

"The newly-appointed executive team is working on future plans to stay relevant and sustainable in today’s rapidly-changing business environment." 

 

Mr Sng was replaced as CEO by Mr Brian Koo, who had said that he would be working with the executive team to conduct an in-depth review of the business and to "align our strategic interests across our various geographies and verticals".

 

 

 

 

 

[Kxbc]

 

too small to compete with the other big players.

 

 

 

my bet: 6 mths later will close down its habitat store at 34 Boon Leat Terrace.

 

Maybe set myself an alert see if my prediction will come true by 15 Nov 2019.

[Vratenza]

You posted this not so long ago...... 

Honestbee says its S’pore operations unaffected by business review

 

And also learning from Hyflux.... Which company actually tells the truth unless they are legally forced to do so

 

This is all business..... 

 

 

too small to compete with the other big players.

 

 

 

 

[Vratenza]

This is the beginning of the end. Mark my words. 

 

my bet: 6 mths later will close down its habitat store at 34 Boon Leat Terrace.

 

Maybe set myself an alert see if my prediction will come true by 15 Nov 2019.

 

[Jman888]

 

Honestbee names Ong Lay Ann as new CEO

Anisa Menur A. Maulani  , 30 Jul, 2019

 

He will take over the position from interim Honestbee CEO Brian Koo, who was appointed in May

 

In the latest update of the crisis that has been happening to the startup since earlier this year, grocery and food delivery startup Honestbee announced the appointment of Ong Lay Ann as its new CEO, Deal Street Asia reported.

 

Starting from July 15, Ong Lay Ann will take over the position from interim CEO Brian Koo, who was appointed in May.

 

Koo himself will remain on the company’s board. He is also a general partner and founder at one of Honestbee’s investor Formation 8.

 

The company also announced the departure of its CTO and co-founder Jonathan Low since July 11.

 

This year, Honestbee has been facing financial and management issues that led to the suspension of its services in the Philippines, Indonesia, and Malaysia.

 

In Singapore itself, the company had to discontinue its food delivery service.

 

New CEO Ong has close to two decades of leadership experience in IT, commodities, real estate and infrastructure.

 

His past achievements included turning around Australian precast concrete manufacturer Perth Precast by acquiring its assets via Precast Australia, eventually listing the latter on the Australian Stock Exchange (ASX) via a reverse takeover into Weststar Industrial Limited.

 

Ong currently holds directorship positions at ASX-listed Weststar and ISDN Investments, the investment and trading arm of SGX-listed ISDN Holdings Limited.

 

https://e27.co/honestbee-names-ong-lay-ann-as-new-ceo-20190730/

 

 

 

[Kusje]

sianz.

 

Just realized that they've discontinued laundry services on their app. Previously used them a few times to dryclean my suit. was like 12$ and they come and collect and deliver when done.

 

Went downstairs to the drycleaners near my office - $17 bucks!

[Ysc3]

Honestbee Owes Over US$180M To Creditors – To Axe Another 38 Staff As Part Of Restructuring

 

Singapore startup honestbee has been making waves in the headlines following its alleged cash crunch and multiple leadership changes.

 

All of its co-founders — Isaac Tay, Joel Sng, and most recently Jonathan Low — have all left the firm.

 

Ong Lay Ann has also taken over Brian Koo as the new CEO as of 15 July 2019.

 

Following these news, honestbee has submitted an application to the High Court to supervise its restructuring process as it seeks six months of reprieve from creditors.

 

Creditors include its key backer Formation Group, associates of Brian Koo, the managing partner of Formation and current chairman of honestbee.

 

According to Business Times, the firm owes over US$180 million (S$247.7 million).

 

Honestbee has released a statement today (2 August) stating that it aims to restructure its liabilities and seek a moratorium against enforcement actions and legal proceedings.

 

The firm added that this move will help it to re-evaluate its business and bring down the cost structure without interference.

More Staff To Be Laid Off This Week

 

As part of the restructuring process, honestbee has confirmed that it will be laying off 38 employees in Singapore this week.

 

The affected employees will be from operations and engineering.

 

Back in April, honestbee has laid off 10% of its global headcount, an increase from the aforementioned 6%.

 

The firm has also confirmed staff salary delays despite promise of “timely payment”.

 

One former employee told Vulcan Post that the firm explained that the delay was because “the money they were expecting did not come in”.

 

She did not elaborate what this “money” referred to, but it highly likely points to a confirmed new round of funding.

 

In a company townhall session on July 4, honestbee said that two rounds of fresh funds will be injected into the company within the next two weeks.

sianz.

 

Just realized that they've discontinued laundry services on their app. Previously used them a few times to dryclean my suit. was like 12$ and they come and collect and deliver when done.

 

Went downstairs to the drycleaners near my office - $17 bucks!

 

the way they do business is just like one of the previous shops in Changi Village.

 

this shop was selling provision at super cheap prices !! business was brisk.

 

but then one day the shop closed down without notice.

 

Neighbors said the shop was heavily in debt and the owner ran away.

 

basically owe suppliers and then sell cheap to collect fast cash and then run away when heavily in debt !!

[Volvobrick]

my bet: 6 mths later will close down its habitat store at 34 Boon Leat Terrace.

 

Maybe set myself an alert see if my prediction will come true by 15 Nov 2019.

 

Your prediction comes true.

 

Much earlier!

[Kxbc]

Your prediction comes true.

 

Much earlier!

Haha, I was searching for this post of mine but can't find it. Thanks for locating it for me.

 

But the physical store is still running. Probably slightly under water cash flow wise at operating level. And trying hard to see if can recoup initial capital expenditure. So must give it a few more months. They will probably try to keep it going till lease runs out, maybe they have a 1+1 lease. Early termination might incur some termination costs they cannot afford now.

 

Let us wait and see for a couple of months more.

[Jman888]

they are also having financial problem in Taiwan, believe they are looking for new investors, if no one come to the recuse then bye bye liao.

[Volvobrick]

Haha, I was searching for this post of mine but can't find it. Thanks for locating it for me.

 

But the physical store is still running. Probably slightly under water cash flow wise at operating level. And trying hard to see if can recoup initial capital expenditure. So must give it a few more months. They will probably try to keep it going till lease runs out, maybe they have a 1+1 lease. Early termination might incur some termination costs they cannot afford now.

 

Let us wait and see for a couple of months more. ðµ

Won't be running for long as suppliers will demand cash payments! Otherwise they will end up joining the queue of creditors.

 

If no cash to buy new stock, the store is as good as dead.

[13177]

Honestbee closing down ah?! 

[Karoon]

market too saturated... online grocers, electrcity suppliers, telcos..... can see pattern who die first

 

give honestbee idea lah..... why not tie up with pasir panjang wholesale centre.....set up online shop and do deliveries from there.... having your own mart is just a big drain

[Angcheek]

Honestbee closing down ah?! 

 

You now then know arh .......    their new shop concept in Pasir Panjang was a failure and shorten their lifespan . 

[Jman888]

 

Quote

 

Honestbee Chairman Brian Koo Resigns, Firm Still Owes Ex-Staff Almost $1M In Salary

Zafirah Salim
2019-09-24 11:41:24

The dark days aren’t over yet for troubled firm honestbee.

Earlier on August 1, the homegrown startup applied for a six-month moratorium and was later granted a 30-day extension to October 4 as it looks to restructure its debt.

The firm has an extensive list of creditors, which include Amazon Web Services, Google Asia Pacific, Formation Group, Shopback, Prime Supermarket, among others.

Formation Group is a key backer of honestbee, and has since invested US$25 million in the company. South Korean Brian Koo, whose family controls tech giant LG, is the general partner of Formation Group.

Brian Koo Resigns From The Board

Koo served as honestbee’s interim CEO after co-founder Joel Sng stepped down in May 2019.

Ong Lay Ann later took over as the company’s new CEO in July, and Koo has since assumed the role of honestbee’s chairman.

According to an affidavit filed in court on September 20, Koo has resigned from the board on September 12.

The filing stated that Koo had “intended to step down from both the management of the company and its board” after it hired a “restructuring specialist who would be able to successfully restructure the company and set it on a trajectory to profitability”.

It also noted that Koo and associates are owed around S$258 million, which is almost 90 per cent of the company’s debt.

Two days before his resignation, Koo invested a further US$650,000 (S$895,000) in the firm.

Most of this capital, along with another US$2 million investment by Koo and Formation Group, has been used for day-to-day business operations, according to The Business Times.

In the filing, honestbee said it has secured funding to pay off its “small creditors”, who are owed $500 or less.

According to the firm, 1,140 of these small creditors are due to receive a total of about $165,000.

Another 166 creditors, who are owed between $500 and up to $1,000, are due to be paid around $116,000.

After excluding payments to small creditors, Honestbee has an outstanding debt of $286 million, according to the affidavit.

Honestbee Still Owes Ex-Employees Salary

In August, Vulcan Post reported that honestbee has received new funds but it was still “insufficient” to pay the salaries of all its Singapore headcount, according to an e-mail sent out by its HR.

As such, honestbee’s senior management had to forego their July pay and their salaries were channelled towards paying current employees instead.

Honestbee also said that it expects to receive the second round of funding by end August, which will be used to pay the salaries of all ex-employees.

However, the aforementioned affidavit revealed that the firm is still in the midst of paying its 217 former employees, who are owed July and August salaries amounting to S$987,995.46.

Some of these employees have filed claims with the Tripartite Alliance for Dispute Management (TADM).

In response, an honestbee spokesperson told The Business Times that the company “will be, if not already, in active discussions with staff in relation to a feasible payment schedule.”

TADM will monitor and enforce the payment schedule, while the Ministry of Manpower will closely observe honestbee to ensure that employees are paid on time.

As part of its cost-cutting measures, honestbee has reduced its headcount to 190 employees.

Earlier in January, honestbee had 523 full-time and 77 part-time employees in Singapore.

 

 

[Jman888]

Honestbee clears out furniture from habitat; police called in

Quote

 

honestbee clears out furniture from habitat; police called in
Failed startup believed to have contacted police after landlord's staff appeared at premises to question the move

MON, MAR 02, 2020 - 5:50 AM
CLAUDIA CHONG

TENSIONS between honestbee and landlord LHN Space Resources have escalated with police called in on Feb 28 after the embattled startup moved its furniture and fixtures out of its concept supermarket habitat.

When BT visited habitat at 34 Boon Leat Terrace on the afternoon of Feb 28, police officers were seen interviewing staff of LHN. BT understands that honestbee contacted the police after LHN staff appeared at the premises to question why the startup was moving its furniture out.

When BT visited habitat again on Saturday evening, more furniture, including about 150 chairs and dining tables, were lined up at the entrance of habitat, with a few honestbee vans parked at the loading area.

A lorry stacked with the tables and chairs from habitat was seen driving away. Though it's unclear where the furniture was being taken to, BT understands that honestbee has rented a new space in Genting Lane from March 1.

It is understood honestbee has S$1.97 million worth of furniture and fixtures, S$3.87 million worth of store equipment and over S$84,000 in office equipment recorded on its books as of end-January.

Both honestbee and LHN declined to comment on the matter. BT understands that honestbee still has seven months left on its three-year lease for habitat, and that at least as of end-January, LHN was not deemed to be a creditor of the startup. It is not clear if honestbee currently owes LHN any rental payment.

The latest developments come as honestbee is said to mull the permanent closure of habitat, due to heavy overhead costs. The supermarket has been shut since Feb 10, on account of reduced footfall after the Covid-19 outbreak. The startup is now said to be considering a pivot to a quick service restaurant concept instead.

The potential change in business direction could be challenging to execute, given that honestbee appears to be on a tight leash in terms of working capital. The startup still owes ex-employees the final tranche of salary repayments. It recorded liabilities of about S$707,000 in payables for salaries and unpaid Central Provident Fund contributions, as at end-January.

In addition, BT has learned that one of honestbee's key executives, Kenneth Forbes, resigned about a week ago as vice-president of habitat. Mr Forbes was previously general manager of habitat and oversaw its early development. When contacted, he confirmed his resignation but declined to comment further.

Should habitat remain closed, it would be a stark reversal from honestbee's earlier plans, when it cited the continuation of habitat as the centrepiece of its restructuring.

The embattled startup is currently seeking a nine-month extension of its debt moratorium and is proposing to restructure some US$230 million worth of debt, by repaying creditors 3 cents on the dollar in cash and the remainder via issuing shares in a new entity. However, creditors owed S$500 or less will be repaid in full.

LHN has opposed honestbee's moratorium application and also requested to be carved out of the moratorium.

LHN's application against honestbee was heard before the High Court on Feb 27 and the hearing has been adjourned.

 

 

[Windwaver]

Not very honest I guess