With key partners terminating contracts, DreamFolks has been forced to halt its domestic lounge aggregator role.
DreamFolks Services shares fell 5% in early trade on Wednesday after it announced an exit from its domestic airport lounge services, effective September 16. It, however, added that other domestic services and the global lounge business will continue as usual.
This move is expected to have a significant impact on its core business operations and follows the exit of multiple suppliers and operators from their contracts.
“We reiterate that contracts with our clients remain active, and discussions on alternate customer value propositions are in progress,” the company said in a statement.
Key partners such as Travel Food Services, Adani Digital, Semolina Kitchens, and Encalm Hospitality terminated or discontinued their agreements in August, forcing DreamFolks to halt its role as a domestic lounge aggregator and pivot toward its global offerings instead.
Dreamfolks had also stopped certain associations with Axis Bank and ICICI Bank for the lounge services in July.
What Is The Retail Mood?
Data on Stocktwits, however, shows that retail sentiment has stayed ‘bullish’ amid ‘extremely heavy’ message volumes for a week.
The company’s share price has plummeted, falling about 66% year-to-date.
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