Zilingo co-founder and former CEO Ankiti Bose has resigned from all directorship positions at the company, including the holding company and all subsidiaries, in a fresh turn of events related to the Singapore-based fashion startup.
“Given the current circumstances, and due to the opacity of information to me as a board member and a shareholder, I resign forthwith from all directorships I hold with Zilingo’s holding company and any of its subsidiaries,” Bose wrote in a statement on June 30.
Bose’s resignation comes at a time when Zilingo has been in discussion with shareholders over a management buyout offer as well as a potential liquidation of the company’s assets to pay off creditors.
Earlier this month, Zilingo co-founder and chief technology officer (CTO) Dhruv Kapoor had proposed a management buyout plan to shareholders that would involve the liquidation of Zilingo’s assets and the formation of a new company.
This proposal would see a fresh capital injection of $8 million into a new entity holding five of Zilingo’s business arms – Z Factory, Z Sourcing, Z Connect/Z Digitize, Z Trade and Z Spotlight – and the restructuring of Zilingo’s outstanding debt commitments to Indies Capital and Varde Partners.
The offer was made on the basis of commitments from an unnamed “Investor Group”, understood to be a British firm, DealStreetAsia had reported earlier.
The second plan would involve its creditors — namely Varde Partners and Indies Capital — taking charge. The two creditors had recalled their loan from Zilingo as the public saga unfolded last month. Varde and Indies had committed a $40 million loan to Zilingo in July 2021 via Zorro Assets Limited.
The third plan would be liquidation, which would see Zilingo dissolved and its assets sold. According to an Inc42 report last week, Varde Partners is driving towards having Zilingo’s assets liquidated.
On May 20, 2022, Zilingo terminated Bose’s employment based on the results of an independent inquiry into complaints of financial irregularities.
“Over the past few months, despite my requests, the Zilingo board has failed to show me any report (issued by Kroll or Deloitte) which pertained to any investigations into the company or into my alleged misconduct, and why or how these were used to terminate my position as CEO,” Bose said in her June 30 statement.
“This was notwithstanding that I remained a board director in the group’s holding company and its subsidiaries, and despite the fact that I remain a shareholder of the company. During this time, other material information pertaining to the company has also been concealed from me,” she added.
Bose went on to stress that it has been “heartbreakingly clear” that hundreds of employees and customers are also in a state of limbo “and do not have any clarity on their future – just like me”.
Here is the full text of Ankiti Bose’s statement:-
Over the past few months, despite my requests, the Zilingo board has failed to show me any report (issued by Kroll or Deloitte) which pertained to any investigations into the company or into my alleged misconduct, and why or how these were used to terminate my position as CEO.
This was notwithstanding that I remained a board director in the group’s holding company and its subsidiaries, and despite the fact that I remain a shareholder of the company. During this time, other material information pertaining to the company has also been concealed from me.
At the same time, spokespersons and “leakers” have been busy spewing nasty media narratives, which is to the detriment of all concerned.
It is heartbreakingly clear to me that hundreds of employees and customers are also in a state of limbo and do not have any clarity on their future – just like me. Real lives and jobs have been at stake.
Given the current circumstances, and due to the opacity of information to me as a board member and a shareholder, I resign forthwith from all directorships I hold with Zilingo’s holding company and any of it’s subsidiaries.
This is a difficult time for my Zilingo team, and I want to assure all my beloved Zilingo colleagues that my resignation as a board member is not in conflict with my commitment to save the company. I will always fight for you and alongside you.
I will unflinchingly support ‘any’ plan that saves the jobs at Zilingo and I would once again request every Zilingo shareholder to try and look past our differences and personal agenda, and prioritise what is best for our people who have given their blood, sweat and tears to our company.”