The Good Glamm Group, once a high-flying beauty and content platform, is facing severe financial distress. The company has delayed salary payments for the month of April. It has also failed to clear the full and final settlements for employees affected by recent layoffs.
Employees were informed that the April salary will be paid alongside the May salary, by June. However, uncertainty looms, especially for those who have already exited the company. Payments for former employees have been put on hold until the company completes a new round of fundraising.
Several former employees reportedly haven’t received salaries for February and March either. Internal communication pertaining to these delays has been minimal and unclear, adding to employee anxiety and dissatisfaction.
This isn’t the first time the company has held back salaries. In January, salaries for about 300 employees were also delayed. The company’s cash flow crisis has triggered a wave of layoffs, impacting 15 per cent of its workforce, that is, about 150 employees, as part of a reorganisation exercise aimed at achieving profitability by FY25.
Leadership instability is only adding to the firm’s woes. Priyanka Gill, co-founder and Piyush Kalra, CFO, have stepped down, while new leaders such as Manan Jain, group COO, and Kartik Rao, chief people officer have stepped in. The company is in the process of trying to restructure its operations and restore investor confidence.
Good Glamm is now seeking to raise Rs 250-500 crore to cover liabilities, including payments to employees, vendors, and founders of acquired brands. Reports suggest the company may sell off key brands such as Organic Harvest and The Moms Co.. Amongst the potential buyers are brands such as Mamaearth, Nykaa and Purplle.
