Good Glamm Group Faces Insolvency as Employee Salary Grievances Mount

The Good Glamm Group, once celebrated as India’s first D2C beauty unicorn, is facing a severe crisis as insolvency proceedings reveal a growing trail of unpaid employee dues.

The National Company Law Tribunal (NCLT) recently admitted an insolvency plea against the group’s parent entity, Sanghvi Beauty and Technologies.

This follows a petition filed by a former executive over unpaid arrears.

Escalating Financial Distress and Legal Battles

The insolvency filing marks a low point for the startup. It expanded rapidly through high-profile acquisitions of brands like MyGlamm, Mom’s Co., and PopXo.

While the initial petition was triggered by a specific operational creditor, it has opened a floodgate of grievances from former and current employees.

Legal filings and internal reports suggest that the company owes crores in unpaid salaries, notice period buyouts, and statutory dues.

Many employees claim that despite multiple assurances from the leadership, settlements have been delayed for months, forcing several to seek legal recourse.

The Good Glamm Group Operational Overreach and Layoffs

The liquidity crunch at Good Glamm is largely attributed to an aggressive acquisition strategy that failed to yield immediate profitability.

In an attempt to streamline operations and reduce its burn rate, the company underwent multiple rounds of restructuring over the past year.

These “right-sizing” exercises led to the exit of hundreds of employees across various departments.

However, the lack of timely full-and-final settlements has left many former staffers in financial limbo, further damaging the company’s reputation in the startup ecosystem.

The Road Ahead: Resolution or Liquidation?

The NCLT has appointed an Interim Resolution Professional (IRP) to manage the company’s affairs.

This professional will also consolidate the claims of all creditors, including employees.

This process places the company under a moratorium, meaning all existing legal proceedings against it are stayed.

While the management has expressed intent to settle dues and resolve the insolvency through fresh funding or a settlement plan, this has not been enough to calm the situation.

The uncertainty has created panic among the workforce.

The outcome will depend on whether the group can secure a white-knight investor. Otherwise, it will be forced into liquidation to repay its mounting debts.

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