Gurgaon-based e-commerce company AskMe has finish off its operations and is losing all its employees due to a severe money crunch and random exit of its principal investor this will causeAskMe Bazaar is shutting down, says this report from Times Of india. The company has not created any official announcement yet. However, reports said that the staff are asked not tocome back to the office any longer. The unexpected shutdown has now left more than 4000 staff and its different creditors in the lurch. To makematters worse, these employees haven’t even been paid for the past 2 months. Below is the pic,the e-commerce web site remains live however isn’t acceptingany new orders.
So what exactly led to Askme Bazaar isshuttingdown ? Since the beginning of this year, the company had been facing severe trouble once its primary investor, Malaysia-based Astro Holdings (which holds 98.5% of the stake) was unable to make the required payments to its sellers andstaff. AskMe had then knocked on the doors of Ministry of corporate Affairs (MCA) and Registrar of companies (RoC) asking them to make sure that the Malaysian investor doesn’t exit the country without meeting its liabilities and commitments, reported DNA.Dues value $15 million in terms of vendor payments and staff salaries were pending, which led to 650 staffresigning from their posts. Due to this, AskMe was trapped because it couldn’t raise cash from any other investor to clear its dues and continue its business. As a result, shutting down its operations seems to be the only viable possibility presently. Now, the question is that with the exit of its biggest investor, can AskMe be able to revive itself on its own and findnew investors?