Car portal UCars told to repay holding company more than S$400,000
In January this year, local car portal UCars was served a notice of demand for owing more than S$400,000 to its holding company, 21 United Holdings.
Source: CarBuyer
Apart from retrenching its employees, The Straits Times (ST) reported that the portal’s then-Chief Executive Officer (CEO) has since stepped down.
At present, the staff count at UCars has dwindled from about 50 to “only half a dozen”.
Company retrenched staff after receiving legal letter
According to ST, UCars acquired the online portals Top Gear and CarBuyer Singapore in 2021.
However, after receiving the legal notice of demand in Jan 2024, the company retrenched the team comprising 10 people from the two portals.
More than 20 staff within the UCars team also left the company in the past year, stated ST.
Furthermore, CEO Hong Chun Mun stepped down from his post after UCars received the legal letter.
Source: Huawei Singapore on Facebook
He was succeeded by Mr Wynton Lee from Farquhar VC, one of the portal’s investors. Mr Lee is said to be the second-largest shareholder after 21 United Holdings.
Meanwhile, several directors at 21 United Holdings have left, including former chairmen Eddie Loo and Albert Neo, as well as some founding members.
The notice of demand states that UCars has to repay 21 United Holdings S$400,000.
Management problems surfaced three years ago
Citing insider information, ST reported that problems within UCars’ management surfaced three years ago.
Failing to profit from advertising and events, the company lost about S$300,000 each month.
With the sustained revenue loss, several Top Gear and CarBuyer employees did not receive their salaries.
Company aims to start anew
After laying off staff and letting go of two of its office floors at Ayer Rajah Crescent, the company has reduced its costs to S$20,000 monthly.
It has reportedly almost completed settling the affected staff’s unpaid salaries.
The insider also highlighted to ST that UCars will no longer hold on to Top Gear Singapore.
“What we want to do now is press the reset button,” they stressed.
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Featured image adapted from UCARS on LinkedIn.
