The Standard Group Plc has dispelled reports stating that it had been declared insolvent.
On Wednesday, March 27, a memo purported to have been sent to Standard Group’s employees informing them about a decision to declare the company insolvent surfaced to spark an online buzz.
What followed was a debate among Kenyans from different walks, with many reflecting on the recent woes facing the Standard Group.
However, in a statement seen by The Kenya Times, Standard Group labeled the memo fake and warned members of the public against falling for the misinformation peddled by influencers on social media.
“This is NOT a genuine memo from The Standard Group PLC or any of the brands associated with it. It is a manipulated post. Be cautious NOT to fall for propaganda and deep fakes,” Standard Group PLC stated.
In addition to the fake memo, another unverified letter bearing the letterhead of the Capital Markets Authority (CMA) surfaced online to add the confusion surrounding the fate of the Standard Group. The two letters were part of the posts shared under the tag “Standardmediadying”.
Whilst the company has been rocked by financial constraints in the past few years, no official communication from either the company’s management or the Capital Markets Authority had been shared to inform its publics about plans to declare it insolvent.
Also Read: Standard Group Crisis Deepens as Former Employees File for Insolvency
Standard Group struggles to remain afloat
However, the company has been embroiled in several conflicts with its employees and former employees over unpaid dues- among other challenges. In January 2024, seven former employees complaining about their unpaid dues filed a case demanding full settlement.
The seven, according to correspondence seen by The Kenya Times, were among a group of employees who were promised full pay of their salaries and other benefits when they resigned in 2022.
According to one of them who spoke to The Kenya Times under a condition to remain anonymous, the Standard Group had resorted to rolling out a Voluntary Early Retirement (VER) arrangement in September 2023 to ease the pressure it was facing due to the pressure of meeting its operating costs.
Also Read: Sakaja Slaps Standard Group, Activist with Ksh100M Demand
However, the company delayed in fulfilling its part of the agreement, prompting the employees to file for insolvency. In a statement issued in 2023, Standard Group PLC had expressed its hopes that it would turn around the situation and blamed the financial woes on the unpaid bills for services remitted to the government.
Over the past two years, the company has on several occasions declared redundancies as part of its strategy to cut on cost and restructure its operations in light of the changing trends in the media sphere.
