End Of Good Glamm Group: Lenders To Sell Off Brands

Content-to-commerce startup The Good Glamm Group is nearing its end, with its lenders deciding to sell the brands owned by it.

The Good Glamm Group founder Darpan Sanghvi took to LinkedIn to announce that the lenders have decided to enforce their charge on the individual brands under the group and will sell them one by one.

In his lengthy post, Sanghvi said that this is the last resort left for the startup after exploring a plethora of solutions like refinancing, partial brand sales, strategic investments, among others.

“The decisions, the choices that didn’t work, the risks that didn’t pay off, and the people who have been impacted: employees, vendors, partners, lenders, shareholders. I understand, just saying “I’m sorry” isn’t enough. I take responsibility, and responsibility isn’t just about reflection, it has to be commitment,” the cofounder lamented.

The unicorn, which once had IPO ambitions, already sold a number of its brands over the last few months as its house of brands crumbled due to acquisitions gone wrong. 

The Good Glamm Group sold brands like Sirona, ScoopWhoop and Miss Malini earlier this year. At its peak, it operated over a dozen brands across beauty, wellness, personal care, and content. It now houses only MyGlamm, Moms Co, Organic Harvest, and St. Botanica.

Earlier this month, Inc42 reported that the startup’s venture debt investors — Stride Ventures, Alteria Capital and Trifecta Capital — had stepped in to steer the ship and Arjun Vaidyanathan, a former KPMG professional, was appointed to oversee the restructuring in January this year.

Sources close to the development told Inc42 today that The Good Glamm Group’s lenders are now working on selling the brands individually and the startup will seize to be an umbrella of different brands moving forward.

“There will now be multiple owners for different brands. Once these buyers are finalised, only then will we know the entity structure,” one of the sources said.

Sanghvi hinted that the rough timeline for the sale would be 60 days. During this time, he said he would set up a new “Good Glam Restitution Fund” to clear the dues, if any remaining, of employees, vendors/partners and for “losses incurred by our shareholders”.

It is pertinent to mention that most employees of The Good Glamm Group haven’t been paid their full salaries for the past several months.