FirstCry subsidiary GlobalBees faces Rs 64.9 Cr insolvency plea
The plea was filed by directors of Kuber Mart Industries, Ashutosh Garg, Paritosh Garg and Manju Agarwal, under Section 7 of the Insolvency and Bankruptcy Code, 2016.
Online retailer FirstCry’s parent company, Brainbees Solutions’ material subsidiary Globalbees Brands is facing an insolvency petition filed by the directors of home and kitchen products’ manufacturer Kuber Mart Industries, for an alleged claim of Rs 64.9 crore, according to a BSE filing.
The directors of Kuber Mart Industries, Ashutosh Garg, Paritosh Garg and Manju Agarwal, have filed a plea against Globalbees Brands Private Limited under Section 7 of the Insolvency and Bankruptcy Code, 2016.
In a statement filed on stock exchanges, Globalbees said it is “actively seeking appropriate legal advice, and undertaking all necessary measures to oppose the application.”
The insolvency plea is yet another setback for Brainbees Solutions, which was listed on the public stock exchanges in August last year.
Last month, the company reported widening losses of 50% in the fourth quarter of FY25 though it clocked in double-digit revenue growth, driven by revenue generation from Globalbees.
It posted a loss of Rs 76.7 crore during the quarter, compared with the loss of Rs 51.7 crore it posted in Q4 FY24. On a quarter-over-quarter basis, its loss widened nearly 10X, according to filings made with the NSE.
A day after it reported its quarterly results, the Bureau of Indian Standards (BIS) conducted a major search and seizure at a FirstCry warehouse and seized nearly Rs 1.43 crore worth of toys, sippers, and other products for reportedly being sold without mandatory BIS certification, according to news reports.
Shares of the SoftBank-backed omni-channel retailer has slumped by almost 44% year-to-date. Brainbees Solutions was trading at Rs 378.9 apiece as of 11:17 AM today.
Edited by Swetha Kannan