Once-heralded supply firm MilkRun might be completely ceasing operations inside a matter of days after a disastrous downfall.
Founder Dany Milham despatched an e-mail to the corporate’s 400 staff informing them the supply firm could be shutting up store for good by the top of the week, the Australian Financial Review reported.
“I’m writing to let you know that we have made the difficult decision to wind down the business, and as a result, MilkRun will cease trading this Friday,” he wrote.
Mr Milham blamed worsening financial situations for the collapse of the once-great supply firm which raised $11m earlier than launching in September 2021.
However, a formidable checklist of buyers together with Atlassian founders Mike Cannon-Brookes and Scott Farquhar couldn’t offset the troublesome financial setting.
The choice to shut MilkRun comes months after 20 per cent of the workforce was let go in an try and revitalise the sluggish business.
“Since we announced our structural changes in February, economic and capital market conditions have continued to deteriorate, and while the business has continued to perform well, we feel strongly that this is the right decision in the current environment,” Mr Milham instructed workers.
The CEO reassured his 400 staff that there could be sufficient cash to offer sewerage packages and pay suppliers.
“We’ve always been committed to doing things the right way, and winding down the business while we still have a sufficient cash balance enables us to ensure our people and suppliers are paid in full,” he wrote.
MilkRun was hailed as a revolutionary service when it launched in September 2021 as one of many first corporations to supply ultrafast supply.
More to come back.
Source: www.perthnow.com.au
