Twelve Cupcakes staff gather at MOM services centre to seek recourse after chain closes

SINGAPORE - About 15 counter staff of Twelve Cupcakes met on the morning of Oct 31 at the Ministry of Manpower (MOM) Services Centre in Bendemeer Road to ask about outstanding salaries and payments owed to them by the shuttered cupcake business.

This comes a day after Twelve Cupcakes

announced that it had closed down

and gone into provisional liquidation.

Employees told The Business Times that they were informed of this move via WhatsApp at 8pm on Oct 29, with a termination letter accompanying the message.

No further details were provided by Twelve Cupcakes on the matter. The liquidator, AAG Corporate Advisory, said it is unable to provide details on operations, finances or the reasons for the liquidation before obtaining the relevant information, in response to queries on Oct 30 by BT.

One of Twelve Cupcakes’ outlet managers said outside the MOM Services Centre on Oct 31 that the decision to shutter Twelve Cupcakes came to its staff with zero warning.

“We did not know anything (about this) in advance. There was no notice period at all,” he said. “With so many bills to pay, starting with our rent – what are we going to do now?”

He added that the main concern among employees now is the salaries they are owed for the month of October, on top of compensation for the sudden termination of employment, especially since a 30-day notice period was not abided by.

Other employees BT spoke to said this is particularly pressing as many of those affected have rent due at the end of the month. Most said they are expected to foot their rent by Oct 31 or Nov 1 – or risk facing eviction. 

Those who are foreign workers also said they have debts to repay back home; others have to pay tuition fees for their children.

Some workers noted that CPF contributions were not credited to their accounts for October. 

Specific representatives of the counter staff group were addressed by MOM staff in closed-door meetings. 

These workers said after these meetings that they were told local unions will handle all compensation-related matters. 

They added that a separate meeting with union members has been set up for next week, though a fixed date and time have yet to be confirmed. 

As for S Pass holders, no extension will be given, which means such affected workers will have 30 days to find a new job in Singapore, or they will have to return to their home country. 

For the time being, the group of counter staff are putting together a page to raise donations.

“We are truly hoping for the best by next week – and we hope the Government can help us in our current situation,” the outlet manager said. 

The Food, Drinks and Allied Workers Union (FDAWU) on Oct 30 criticised the chain’s abrupt closure as “unacceptable and unfair”, strongly objecting to the business owner’s lack of prior consultation and advance notice.

FDAWU said it will be assisting members and workers with salary-related claims and job-assistance support, as well as connecting them to the labour movement’s network, such as NTUC’s Employment and Employability Institute. 

BT has reached out to MOM and the CPF Board for comment. 

THE BUSINESS TIMES