SUMMARY
Zilingo cofounder and former CEO Ankiti Bose has resigned from all directorship positions at Zilingo
She added that the resignation as a board member does not mean she is not committed to saving Zilingo
Bose urged shareholders to come up with a plan that can save jobs at Zilingo
Zilingo cofounder and former CEO Ankiti Bose has resigned from all directorship positions at Zilingo, including the holding company and all subsidiaries, even as the future of the company hangs in the balance. Bose’s resignation comes at a time when the Singapore-based fashion startup is in discussions with shareholders over a management buyout offer as well as potential liquidation of the company’s assets to pay off creditors.
Earlier this month, Zilingo cofounder and CTO Dhruv Kapoor had proposed a management buyout offer to shareholders which would involve liquidation of Zilingo’s assets and the formation of a new company. The proposal was backed by Bose and the duo had also claimed that they had received commitments from investors to back the new project to the tune of $8 Mn.
However, voting on this proposal as well as any other potential outcomes for Zilingo such as a complete liquidation was stalled, as we reported last week.
Here’s the full statement from Ankiti Bose:
“Over the past few months, despite my requests, the Zilingo board has failed to show me any report (issued by Kroll or Deloitte) which pertained to any investigations into the company or into my alleged misconduct, and why or how these were used to terminate my position as CEO.
This was notwithstanding that I remained a board director in the group’s holding company and its subsidiaries, and despite the fact that I remain a shareholder of the company. During this time, other material information pertaining to the company has also been concealed from me.
At the same time, spokespersons and “leakers” have been busy spewing nasty media narratives, which is to the detriment of all concerned.
It is heartbreakingly clear to me that hundreds of employees and customers are also in a state of limbo and do not have any clarity on their future – just like me. Real lives and jobs have been at stake.
Given the current circumstances, and due to the opacity of information to me as a board member and a shareholder, I resign forthwith from all directorships I hold with Zilingo’s holding company and any of it’s [sic] subsidiaries.
This is a difficult time for my Zilingo team, and I want to assure all my beloved Zilingo colleagues that my resignation as a board member is not in conflict with my commitment to save the company.
I will always fight for you and alongside you. I will unflinchingly support *any* plan that saves the jobs at Zilingo and I would once again request every Zilingo shareholder to try and look past our differences and personal agenda, and prioritise what is best for our people who have given their blood, sweat and tears to our company.”
On May 20, 2022, Zilingo had terminated the employment of Ankiti Bose, based on results of an independent inquiry into complaints of financial irregularities.
Despite her resignation from the board and her ousting as the CEO of the company, Bose continues to hold 8.58% stake in the company. Given this, Bose will continue to hold some sway over Zilingo and its future.
Besides the MBO, the other option for Zilingo is a complete liquidation and dissolution of the company. The board including the lead investor, Sequoia Capital, have been in talks with various buyout funds based in US, Singapore, for a likely liquidation, as per sources who had spoken to Inc42 earlier.
