Good Glamm Group To Dismantle Unified Model, Lenders To Sell Off Individual Brands
The Good Glamm Group CEO Sanghvi confirmed that lenders have begun enforcing charges on the individual brands under the group.
The Good Glamm Group is dismantling its unified house-of-brands model, chief executive officer Darpan Sanghvi said in a public note on July 23, citing deepening financial stress and unsuccessful restructuring trials. The content-to-commerce conglomerate will now sell its brands individually.
CEO Sanghvi confirmed that the lenders have begun enforcing charges on the individual brands under the group, and the company will be restructured through separate brand sales rather than a group-wide resolution.
“Our lenders have decided to enforce their charge on the individual brands under the Good Glamm Group,” Sanghvi wrote in a letter published on LinkedIn. “What this means is that there will no longer be a group-wide solution which will allow all the brands to continue under a single umbrella. The brands will be sold one by one, and will operate individually. There will be new individual owners for each of the different brands.”
Good Glam Group to cease 'house-of-brands' model
The Good Glamm Group sold brands like Sirona, ScoopWhoop and Miss Malini earlier this year. At its peak, the company operated over a dozen brands across beauty, wellness, personal care, and content. It now houses only MyGlamm, Moms Co, Organic Harvest, and St. Botanica.
With the current dismantling of the conglomerate, CEO 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
In the three-part note, Sanghvi took full responsibility for the collapse of the group's strategy. “Is this what I hoped for? No. Is this unexpected? To be honest, also No. Is this the right of the lenders? Yes. And as the founder, this is on me,” he said.
“The decisions, the choices that didn’t work, the risks that didn’t pay off… I understand, just saying ‘I’m sorry’ is not enough. I take responsibility, and responsibility isn’t just about reflection; it has to be about commitment.”
In his note, Sanghvi reflected on his journey with the conglomerate. “Good Glamm was my everything... I believed in it so deeply that I never did a secondary, never sold a single share. I was convinced we would build this towards one of India’s most celebrated IPOs. But today, that fear, that dread, has become my reality," he said.
He ended the note by reaching out to fellow founders and employees. “It is my moral responsibility to resolve this for every past and present employee, and for every stakeholder, whether it’s our lenders, vendors, or our equity shareholders, and set things right.”
Good Glamm's pledge to vendors, employees amid distress
CEO Sanghvi has made a commitment to use his earnings for settling the unpaid dues. “If the lenders are unable to complete a sale… and we are unable to clear any portion of the employee dues, then I am giving a personal commitment… that moving forward 25% of what I earn (post-tax) from salary or gains from equity in any venture, will go toward making you whole.”
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 unpaid dues, if any remaining, of employees, vendors/partners and for “losses incurred by our shareholders”.
Last year, the conglomerate laid off about 150 employees or 15% of its workforce as it tightened expenditures and restructured its top deck ahead of its then-planned IPO. It had planned to put in place an organisational framework for optimising operations and "eliminate redundancies".
