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Honestbee Receives New Funds But Still "Insufficient" To Pay Salaries Of All S'pore Staff

[Update: 8 July 2019, 5.03pm]

An anonymous honestbee employee shared with Vulcan Post that a similar email on the July salary update — which was sent to ex-employees earlier today — has also been sent to current employees.

A copy of the email that was sent to honestbee employees

In the email, honestbee acknowledges that it has been a “trying time” for its staff.

With the new funding they received, honestbee will be channelling it towards paying the salaries of current employees who are not serving notice.

“These salaries have already been disbursed,” it added.

Employees who are serving their notice, as well as ex-employees, will only receive their overdue salary by end August, when the second round of funding comes in.

While this is disappointing news, we want you to know that the moratorium is the first step in the long-term path of recovery.

– Varian Lim, chief of staff, honestbee

Last month, honestbee confirmed that there have been delays in staff salary but it is not clear how many staff are affected in Singapore.

A former employee previously told Vulcan Post that honestbee explained that the salary delay was because they were waiting for money to come in.

She did not elaborate what this “money” referred to, but it is very likely that it refers to a confirmed new round of funding.

On July 4, honestbee told its staff in a townhall session that two rounds of fresh funds will be injected into the company within the next two weeks.

Will Receive Second Round Of Funding In End-August

Today, honestbee’s “chief of staff” from the HR department sent out an email to its ex-employees regarding an update on July 2019’s payroll.

honestbee singapore
Screenshot of the email sent by honestbee’s HR

The email, as seen by Vulcan Post, started off with an apology for the “lack of communication” regarding the July salaries.

Due to the recent restructuring of our debt, we were only able to receive new funds after the moratorium was filed.

– Varian Lim, chief of staff, honestbee

However, this new injection of funds is still “insufficient” to pay the salaries of all their Singapore headcount.

As such, honestbee’s senior management will not be paid for now and their salaries will go towards paying current employees instead.

The firm expects to receive the second round of funding by the end of this month, which will be used to pay the salaries of all ex-employees.

Meanwhile, honestbee stressed that their CPF will not be affected.

Honestbee Receives US$25M Investment

It was formerly revealed that honestbee owes creditors over US$180 million (~S$248.6 million).

Honestbee has since applied for a moratorium on August 1, which serves as a legal authorisation to debtors to postpone payment.

The leaked court document reveals that the firm has been exploring options to raise capital prior to the moratorium application. This includes discussions with Brian Koo (former interim CEO) and other parties who are willing to invest in the company.

Formation Group for one, has invested US$25 million in the company, according to the court document.

 

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