Zee subsidiary Sugar Box shuts down amidst financial concerns: Reports
Reports suggest that the employees of the company were informed about the closure via a virtual call and no formal written communication was shared with them.
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Zee Entertainment Enterprises Limited (ZEEL) subsidiary, Margo Networks Private Limited, that provides internet connectivity under the brand name of Sugar Box has abruptly shut down its operations on March 22nd, 2024. According to a Moneycontrol report, this closure has left about 60 employees out of work and raised concerns about ZEEL's financial health.
Reports also suggest that the employees of the company were informed about the closure via a virtual call and no formal written communication was shared with them.
While some employees received letters stating their resignations were accepted and dues cleared, others remain in the dark.
Apparently, Sugar Box had been reassuring its employees for months about receiving funds from ZEE, prompting them to stay on despite salary delays.
However, ZEEL has been scaling back investments across board. The company just announced a 15 percent downsizing of its workforce.
The shutdown of Sugar Box, adds another layer of complexity to the company's current struggles.
Since the termination of the $10 billion merger with Sony Pictures Networks India (SPNI) in January 2024, Zee has been facing a series of challenges. This period, now approaching three months, has seen the company embroiled in court cases, implementing job cuts, and now experiencing a subsidiary closure, all contributing to a period of significant turbulence.
