The Good Glamm Group’s financial troubles show no signs of ebbing. The situation has forced Darpan Sanghvi, CEO and managing director, to issue a public apology. In a LinkedIn post shared via the company’s official page, Sanghvi acknowledged the delays in salary payments and accepted moral responsibility for the impact it has had on hundreds of employees.
He admitted that the company’s financial downfall had reached a level that Sanghvi had “never imagined, even in his worst fears”. He attributed the mess to the failure of a brand- acquisition deal, which was supposed to have generated much-needed funds.
Sanghvi’s post reveals that the deal unexpectedly failed to materialise when the acquiring company’s CEO suddenly quit. This disrupted the whole process and set off a series of financial setbacks.
Although Sanghvi’s message was taken down later, was considered, by most who saw it, as a rare instance of leadership accountability. Sanghvi reassured employees that while there may be delays, the leadership is definitely endeavouring to raise funds and rectify the situation.
Frustration among staff members has been growing, especially among former employees who have not been paid since February. These employees have received no official communication either and their dues continue to remain unsettled.
Even the employees still working there have only just received a fraction of their April salaries, with no sign of May and June salaries. Meanwhile, the company has vacated its offices in Kurla, Mumbai, and permanently shut down its Vasant Kunj site in Delhi as part of companywide cost-cutting measures.
The apology hasn’t helped dismiss the discontent that has built up. With no concrete timelines or solutions, many employees both current and former, feel the company’s promises are empty.
With rising pressure from unpaid staff and lenders reportedly considering legal action, there seems to be no end in sight for the company’s financial crisis just yet.
