Good Glamm Group is no longer seeing a group-level solution for its woes, with its lenders enforcing their charge on individual brands, according to a LinkedIn post shared by founder and CEO Darpan Sanghvi.
In a statement, Sanghvi confirmed that each brand will now be sold or operated individually and transition to new ownership, effectively dismantling the content-to-commerce conglomerate that counted marquee investors like Prosus, Accel India and Bessemer Venture Partners.
“Over the past few months, we explored every possible path to keep the Good Glamm Group together as the way we had envisioned, a digital FMCG conglomerate with multiple brands under one umbrella. We explored refinancing, partial brand sales, strategic investments and more. We left no stone unturned. But when you operate in a complex structure with multiple stakeholders, and time as your enemy, sometimes it just does not come together,” stated Sanghvi.
The company earlier this year sold Sirona, MissMalini, and ScoopWhoop in distress deals following months of financial strain. As a part of its house of brands strategy, Good Glamm Group had acquired several D2C beauty and personal care brands, including Sirona, MomsCo, and Organic Harvest, over the years.
As part of the transition, Sanghvi said lenders will pursue the sale of brands individually over the next two months. If those sales are not completed or fail to resolve outstanding employee dues, Sanghvi committed to personally allocating 25% of his future post-tax earnings and equity gains to repay affected employees.
He also pledged to establish a transparent system to track the disbursal of these payments.
Additionally, Sanghvi also announced his plans for setting up a Good Glamm Restitution Fund over the next two months.
“I will create a Good Glamm Restitution Fund over the next 60 days which will receive equity allocation from whatever I do next in my journey, and that will go towards settling any dues that may remain outstanding for our vendors/partners and for losses incurred by our shareholders,” added Sanghvi, as a commitment to its vendors, partners and shareholders.
Earlier this month, Sanghvi, in a separate post, publicly acknowledged the beauty and personal care company’s ongoing financial crisis, salary delays, and operational disruptions, tracing it back to a failed acquisition deal late last year at the end of its funding cycle.
Once valued at over $1.2 billion, Good Glamm’s structure is now being unwound amid mounting pressure from creditors and failed fundraising attempts.
Edited by Jyoti Narayan
