Indonesia-based Fabelio declares bankruptcy

Indonesian furniture retailer Fabelio has declared bankruptcy, announcing the move through local media. This comes after a Jakarta commercial court reached a verdict on October 5.

Jakarta’s Conclave co-working space was a Project by Fabelio client / Photo credit: Fabelio

“I declare the debtor [Fabelio] in a state of bankruptcy with all the legal consequences,” Gde Braga Abi Tamara, the startup’s legal curator, told Bisnis Indonesia.

On behalf of Fabelio, the curator will handle all of the company’s confiscated assets and then sell them to pay off debts.

The judge overseeing the case has invited the firm’s creditors to a series of meetings:

• First creditor meeting: October 17, 2022 at Pengadilan Niaga, PN Jakpus
• Deadline to submit creditor’s bills and tax bills: November 14, 2022 at Kantor Pengurus, Gedung WTC 5 Jakarta
• Meeting for accounts receivable reconciliation or verify claims for creditors and the tax office: November 28, 2022 at Pengadilan Niaga, PN Jakpus

According to Indonesia’s 2004 PKPU law, bankruptcy is filed by the aggrieved party against the company.

Bankruptcy applicant PT Harta Djaya Karya had previously submitted a request for a Suspension of Debt Payment Obligations (PKPU) to the Commercial Court at the Central Jakarta District Court on March 7, 2022. On October 5, the court decided to grant all PKPU requests.

“PT Kayu Raya Indonesia is in a Temporary Debt Payment Obligation Suspension (PKPUS) for 45 days from the date the a quo decision was pronounced,” the decision said.

See also: Can Indonesia’s Shopify-like startups usurp ecommerce giants?

By the end of 2021, Fabelio staff had reportedly gone unpaid for months. A Change.org petition was created for the startup’s employees, demanding that the firm pay the salaries owed. Rumors also surfaced that several employees were forced to resign.

However, Fabelio CEO and co-founder Marshall Utoyo denied such reports, saying there was “absolutely no coercion.” As he told CNN Indonesia last year, “The company is in a difficult position due to the impact of Covid-19, and indeed there is a delay [in payments] from new investors.”

Founded in 2015, Fabelio previously announced funding rounds from both local and global investors. Some of its backers include: