According to the announcement on the Groupon website, Šenkypl will manage the day-to-day running of the company from the Czech Republic and will remain a member of the board of directors. The Czech entrepreneur and investor replaces the current boss Kedar Deshpande. However, he does not end completely – for the next 60 days he will be an advisor to the company’s management to ensure a smooth transfer of management.
“Dušan is a proven leader who has experience with companies undergoing transformation and building successful online products including a Groupon-like marketplace,” said Chairman of the Board Ted Leonsis. According to the billionaire, whose fortune is estimated by Forbes to be around two billion dollars, this makes Šenkypl the ideal person to manage the company in a crisis situation.
“The transformation of Groupon will require a number of changes that cannot be done without talented people with a hunger for success and results. Groupon is looking for diligent and goal-oriented people who are not afraid of a fast-changing environment and work organized remotely in a remote-first company. I firmly believe that with the right people we will succeed in our mission to increase the value of Groupon for shareholders,” said Šenkypl himself about the change in the top post.
According to the press release, he will devote himself fully to his new role and will therefore transfer his daily responsibilities at Pale Fire Capital to other partners.
Groupon is currently in dire financial straits. The management of the company even in the recently published annual report he warnedthat there are “substantial doubts about the company’s ability to continue as a going concern”.
For the whole of last year, the loss of the portal, which in the past was inspired by the Czech Slevomat, reached 234 million dollars, roughly 5.28 billion crowns. In 2021, the company achieved a profit of almost 119 million dollars. At the same time, sales fell significantly, from 967 million to 599 million dollars. Cash flow was negative, with the firm’s cash falling by $172 million over the last twelve months.
The Pale Fire Capital SICAV fund, which manages the capital of entrepreneurs Jan Barta and Dušan Šenkypl, holds a 22 percent stake in Groupon. At the end of trading on the Nasdaq stock exchange on Thursday, the value of the owned shares was approximately 22.8 million dollars, i.e. 493 million crowns. At the same time, Czech investors spent approximately 2.8 billion crowns on the purchase of shares – the average purchase price is close to 19 dollars. Thursday’s closing rate was $3.37. However, after the announcement, the price strengthened by around 10 percent on Friday.
Both entrepreneurs became members of Groupon’s board of directors last year, and they also strengthened the management with their own people. For example, the position of interim technical director was taken by Vojtěch Ryšánek, who was involved in the transformation of Aukra, and Marie Havlíčková, who has experience with the transformation of Slevomat, also joined the management of the company. Groupon is to transform from a discount portal into a company offering experiences and local services.
