Embattled domestic courier company Elbee Services has witnessed a massive exodus with around 40 per cent of its workforce having quit in the last few months on account of delayed or non payment of salaries.
The company had suspended operations about three months back mainly due to this problem, and has so far been unable to restart operations.
Elbee has been one of the leading players in the domestic courier industry for years and also services the international markets through tie-ups.
Amar Panghal, vice president, finance, Elbee, told Business Standard, "While the salaries of senior executives have been delayed since February, the delivery boys have not received salaries since August. Pick-ups have been suspended since few months, as there are labour issues to be sorted out. We are expecting to resolve this issue in the next 2-3 weeks and then resume operations."
Since little or no revenues have flowed into the company in the last few months, it is mainly looking at internal sources for clearing the outstanding dues to its employees, Panghal said.
However, the company has paid off dues owed to ICICI, IDBI and UTI, through funds raised by the sale of property, he added.
Talks with a foreign player for a strategic alliance, to revamp the business, have also been called off.
"There were some disagreement about the valuations of the business, amongst other issues, and we have dissolved our discussions with the logistics company for the time being," said Panghal.
Sandip Shah, chairman & managing director, Elbee, had told Business Standard earlier, that Elbee was talking to an international logistics company for infusion of funds to bail the company out of the financial difficulties.
