Som Group accused of child labor | Chicken Soup for the Soul files for bankruptcy | Ed-tech company Unacademy cuts 250 jobs

In today’s Portfolio Intelligence Daily:?

• Som Group accused of child labor?
• Chicken Soup for the Soul Entertainment files for bankruptcy
• Ed-tech company Unacademy cuts 250 jobs

Our analyst team curates these summaries from Auquan’s Intelligence Engine, which uses generative AI and retrieval augmented generation (RAG) to uncover material non-financial insights at scale to support deal sourcing, due diligence, risk monitoring, and compliance.

Industry trends:

• Tackling Information Overload in the Age of AI [private credit] (TDWI Upside)
• How RAG completes the generative AI puzzle (InfoWorld) — Retrieval-augmented generation brings to generative AI the one big thing that was holding it back in the enterprise.
• Will AI be transformative for ESG data? (Environmental Finance)
• Why AI is finally catching up with financial services (Maddyness)

India’s Som Group accused of child labor?

An inspection of a Som Group distillery in Madhya Pradesh in central India found child laborers, some aged 13 to 17, filling and packing liquor bottles.

• The National Commission for Protection of Child Rights reported 58 children working illegally at the factory.
• An inspection report based on interviews with 27 workers, including a 13-year-old, revealed 11-hour shifts starting at 8 a.m.
• The state report noted the lack of training and health protection for children working with hazardous chemicals.
• The company stated that the Madhya Pradesh plant was run by an associate company using contractor-supplied labor, possibly without proper age checks.

Select timeline

• July 2, 2024 | MP’s Som distillery made child labourers work 11 hours a day, says govt report (The Print)
• July 2, 2024 | Child labourers at India's Som liquor unit worked 11 hours a day, government says (Reuters)
• June 19, 2023 | Children were sent to distillery by school bus: NCPCR chief on MP case (business-standard)

Chicken Soup for the Soul Entertainment files for bankruptcy

Chicken Soup for the Soul Entertainment (CSSE) filed for Chapter 11 bankruptcy protection.

• The filing was made on June 28 in the U.S. Bankruptcy Court for the District of Delaware.
• CSSE listed total debts of $970 million and consolidated assets of $414 million as of March 31, 2024.
• CEO Bill Rouhana Jr. cited liquidity challenges and failures by lenders as reasons for financial difficulties.
• The company faced defaults and contractual terminations affecting content procurement and monetization.
• Chicken Soup for the Soul Entertainment is a subsidiary of Chicken Soup for the Soul LLC, known for its book series and pet food products.

Select timeline

• July 2, 2024 | Redbox owner Chicken Soup for the Soul files for Chapter 11 bankruptcy protection (NPR)
• June 29, 2024 | Chicken Soup for the Soul Files for Chapter 11 Bankruptcy (Bloomberg)
• June 29, 2024 | Chicken Soup for the Soul Entertainment, Parent of Redbox, Files for Chapter 11 Bankruptcy Disclosing Nearly $1 Billion in Debts (Variety)

Unacademy cuts 250 jobs

Indian edtech giant Unacademy is laying off about 250 employees.

• 100 employees from marketing, business, and product departments along with 150 employees from the sales department were laid off.
• Total job cuts since the second half of 2022 amount to about 2,000.
• The restructuring is deemed necessary for achieving profitability.
• Layoffs coincide with potential merger talks with K12 Techno, owner of Orchid International school chain.
• Unacademy has been cutting costs for two years while expanding its physical presence.

Select timeline

• July 2, 2024 | Indian edtech Unacademy cuts another 250 jobs (techcrunch)
• July 2, 2024 | Unacademy fires 250 employees in fresh round of layoffs (indiatimes)
• November 7, 2022 | Unacademy gives pink slips to 350 employees in second round of layoffs (business-standard)

While you’re here…

If you find insights like these interesting, smash that subscribe button!?

If you’d like a deeper non-financial risk and opportunity analysis of any of the companies covered here — or that you’re focused on, let us know.?

We’d love to show you how Auquan’s Intelligence Engine can help you transform private company research for deal sourcing, borrower screens, due diligence, risk monitoring, sustainability, and compliance. Let’s talk!

#genai #privatequity #privatecredit #privatemarkets #fintech #duediligence #esg #rag