A commercial court in Bengaluru recently passed an injunction order against health and fitness startup Curefit’s subsidiary CureFoods, restraining he firm from selling its moveable assets such as kitchen equipment.
Reported by ET (1), the case was filed by CureFoods’ landlord, who claimed that the firm had withheld its rental payments and not honored the lock-in period of the lease.
CureFoods operates as CureFit’s EatFit brand and took up the rental property in Bengaluru for Rs 9.5 lakh per month through a registered lease dated on 27th January 2020, with a three-year lock-in.
The rent was payable from 1st May after the landlord undertook remodeling work to the company’s specifications.
Curefit stated in its termination letter for the lease that their business was affected due to the COVID-19 situation. However, the landlord stated that the company was freely operating its food delivery services as it was a part of the essential services.
Curefit’s expansion to the US
Earlier this month, Curefit undertook a second round of layoffs and furloughs that impacted the livelihood of over 600 employees, two months after laying off over 700 workers.
It was also reported that the company has been planning to expand its fitness unit cult.fit and other services from mind.fit, including meditation, yoga, and therapy services to the US market.
Mukesh Bansal, co-founder and CEO at Curefit, said that the coronavirus pandemic has helped in boosting the company’s growth, which has allowed it to expand its services to the US market, which was originally planned to be done after five years of operations in India.
CultFit brand had to shut down the operations of its cloud kitchen brand EatFit, which had raised Rs 832 crore funding from Singapore government-backed investment company Temasek.
Several other businesses have been affected during the Corona times, including Zomato, Uber, Ola, Paytm, Swiggy, etc.
Link : https://timesnext.com/bengaluru-court-restricts-curefoods-selling-assets/
Author :- Saumya Uniyal
August 01, 2020 at 02:10PM
TimesNext