Honestly speaking, it hasn’t been goody for honestbee so far.
Other than being revealed to have owed over SGD$247 million to investors and many local companies, the start-up even has debts of unpaid salaries.
Unlike debts to other business, whereby it’s a civil case between the businesses, owing salaries to employees is an offence under the Employment Act; you either pay up or you get charged.
It’s no wonder the struggling start-up paid off this debt the moment they get some funding.
Here’s what allegedly happened.
Received One Funding Only Early This Month
Last month, honestbee finally confirmed honestly that there have been delays in salaries, and it’s alleged that they’re waiting for two rounds of fresh funds to be injected into the company before August.
I’m no businessman, but using parents’ money borrowed money (or any other money) to pay for manpower doesn’t seem logical to me. I’ve always thought that my pay comes from the company’s sales, no? Maybe that’s why I’m still a lowly writer.
But anyways.
It turns out that the funds didn’t come in until they filed for the moratorium, which leads to everyone knowing how much they owed to their creditors.
According to Vulcan Post, which got a copy of an email sent to current and ex-employees, they were not able to get the funds until early this month.
However, they only received one of the two rounds of funds.
Paid Current Employees but Not Senior Management & Departing Staff
The email also states that the funds aren’t enough for all Singapore staff, so the priority would be for the current staff.
Senior management will not be paid (伟大? Noble?) and people who are serving notice will not be paid yet as well.
Maybe both the senior management and people who are serving notice are rich lah. I mean, people quit honestbee because they’re rich, and not because they’re worried about money, right?
However, the good news is that the second round of funds will come in at the end of August, which will then be used to pay staff who have left or are serving their notice.
Nothing is mentioned about the senior management. Either sucks to be one or rich noble to be one.
The email is sent by their chief of staff, which I think literally means the chief (head) of staff (employees), and not a key assistant to the organisation, unlike the Chief of Staff to the White House or to the Army.
No Run Road
We’re no business to give opinions, but given that there has been so many companies that just “run road” (RIP, oBike), you’ve got to admit that honestbee has been running an honest race back to profitability.
So for that, I’d have to say kudos to them: it’s so tempting to just declare bankrupt with so many debts, but they’re working on solutions instead of wearing their running shoes.
Keep buzzing, honestbee.
Here’s a simplified summary of the South Korea martial law that even a 5-year-old would understand:
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