Food delivery firm Gousto has been thrown into a governance storm after slashing its valuation and reducing its share price. The company, which was once valued at £500 million, is now worth just £250 million following the move, which has sparked outrage among investors and customers.
The controversy began after Gousto reduced its share price from £2.53 to £1.40, a drop of 44%. This resulted in a sharp decline in the value of Gousto’s shares, and led to a significant slump in the company’s valuation. The decision to reduce the share price and valuation has been met with criticism from investors, customers and shareholders. Many have questioned the company’s leadership and have accused them of mismanaging the company’s finances.
Gousto’s board of directors has defended the move, saying that it will help the company “remain competitive”. The board also said that the move will help the company “invest in new technology and expand its customer base”. However, critics have argued that the move was made solely to benefit the company’s executives, and have called for an independent investigation into the matter.
Gousto’s founders, Timo Boldt and James Carter, have also come under fire for their handling of the situation. Both men have been accused of not adequately consulting with shareholders before making the decision to reduce the share price and valuation. The controversy has also led to questions about Gousto’s future. Many investors have expressed concern that the company’s leadership is not up to the task of leading the company to success.
The situation has put Gousto’s investors, customers and shareholders in a difficult position. With the company’s future uncertain and its leadership in doubt, it remains to be seen what will happen next. The controversy has certainly raised some difficult questions about corporate governance and the responsibility of company executives.