Former honestbee CEO declared bankrupt

JOEL Sng, the former chief executive of a grocery delivery startup that fell from grace amid mounting debt, has been made a bankrupt.

Sng, a Singaporean, was issued a bankruptcy order by the Singapore court on May 23, according to a notice published on Friday (Sep 9).

The 40-year-old founder, who at one point falsely claimed to be the great-grandson of Chinese revolutionary leader Sun Yat Sen, was embroiled in legal action after reportedly being fired from honestbee in April 2019.

Sng started the Singapore-based company in 2015 with Isaac Tay and Jonathan Low. With the backing of South Korea’s Formation Group, founded by LG scion Brian Koo, the trio expanded the business to markets including Hong Kong, Indonesia, the Philippines and Japan.

But troubles emerged in 2019 and the company, under court supervision, attempted to restructure US$230 million in debt owed to over 1,000 creditors. A flashy tech-enabled supermarket and dining space in Pasir Panjang was shut down in March 2020 amid high overhead costs.

The restructuring bid ultimately failed and the Singapore High Court issued honestbee a winding-up order on Jul 20, 2020.

Last year, South Korean brokerage Mirae Asset Daewoo was awarded a US$5.1 million claim against Sng by the High Court. Mirae Asset had sued Sng for allegedly failing to deliver honestbee shares, after the brokerage paid US$5.1 million for some of his shares.

In January, Sng’s former backer Koo sued him in Singapore, alleging deceit or fraudulent misrepresentation. Court records showed Koo sought US$3.6 million in the case, which has concluded.

Sng’s relationship with honestbee had further soured after his departure from the company. Honestbee said in March 2020 it was taking legal action against its former CEO and an ex-director after it allegedly discovered “numerous irregularities” in various financial transactions.

The transactions included the US$1.1 million purchase of a house in Niseko, Japan under Sng’s name, and transactions between honestbee and an e-wallet company incorporated by Sng, which went undisclosed to the board for over a year.