The unlucky streak in GoJavas’ horoscope is not letting up. IOS had reported last month that GoJavas and Snapdeal were unable to reach a consensus on the sales terms. GoJavas was even looking at reclaiming Snapdeal’s 42% share. However, now it seems that the ecommerce company is not willing to part with its stake. A Snapdeal spokesperson has clarified the company’s stand with the following statement,
“There is no change with regard to our shareholding at GoJavas.”
On the other hand, GoJavas has been keenly scouting for buyers. In the light of the recent events, the logistics company is desperately in need of funds. Over the last couple of days, the company has been forced to suspend its operations and fire a good chunk of its delivery staff. More employees are expected to be asked to leave, say reports. A logistics investor predicts, “They will be firing the operations staff in the next tranche.”
Problems piling on each other
GoJavas’ clients (largely Jabong and Snapdeal) owe the company dues to the tune of Rs. 50 crores. It has also left clients hanging mid-air with their consignments. A worried Abhishek Jain, founder of Mumbai based handloom retail store Ethnickart, says,
“We received an email on August 2 indicating that there will be no pick-ups for our shipment. They haven’t sent back our packages.”
Buyers waiting in the wings
Despite Snapdeal’s insistence that it will not be giving up its share, GoJavas has at least three suitors, says a reliable source. Pigeon Express and Trackon, both Delhi based courier companies, are competing with each other to buy the logistics company. According to a reliable source familiar with the developments,
“There is a third entity which is in the running and the deal has not been finalised yet. Pigeon Express has been the fastest to move.”
The industry will be keeping a close eye on the proceedings for the next few days.
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