Twelve Cupcakes shutters, in provisional liquidation

[UPDATE]

In a media statement on Oct 30, the Food, Drinks and Allied Workers Union (FDAWU), which is an affiliated union of the National Trades Union Congress (NTUC), said that Twelve Cupcakes had informed the union of the decision on Oct 29, the same day as the company's announcement to its workers.

"This abrupt move has created significant uncertainty and distress for about 80 affected workers," shared FDAWU, adding that it "strongly objects" to the business owner's "lack of prior consultation and advance notice" of its decision.

"Despite Twelve Cupcakes being a unionised company under FDAWU, the business owner did not engage the union early to discuss alternatives or support measures for its workers. While the business owner's final decision may have been a commercial one, its execution was not only irresponsible but also lacked due process," said the union.

FDAWU general secretary Sankaradass also called the sudden notice "unacceptable and unfair to both the workers and the union".

FDAWU said it has immediately mobilised its team to support affected members and workers. It will also be assisting workers with salary-related claims and job assistance support, as well as connecting them to the Labour Movement's network such as NTUC's e2i.

It has also called on the appointed liquidator "to collaborate with the union so that benefits under the collective agreement are duly considered as part of the workers' preferential claims".

Homegrown confectionery chain Twelve Cupcakes announced it has closed and is under provisional liquidation. 

This was shared in a notice on the popular dessert chain's website. 

"Dear valued business partners, we regret to inform you that Twelve Cupcakes Pte Ltd has been placed under provisional liquidation with effect from Oct 29, and our last day of operations is Oct 29," it read. 

"We sincerely apologise for any inconvenience caused and would like to express our heartfelt thanks for your kind support and partnership over the years." 

The notice did not share the reason why the company was placed under provisional liquidation. 

In response to AsiaOne's queries, Yessica Budiman, one of the appointed provisional liquidators for Twelve Cupcakes, said that at this juncture, they will not be able to provide any further details regarding operations, finances or the reasons for the liquidation until they have obtained the relevant information.

"We are currently gathering information and will convene a creditors’ meeting within the next four weeks to update on the status of the liquidation, as required under the Insolvency, Restructuring and Dissolution Act 2018," she said.

"We are also working with the Food, Drinks and Allied Workers Union (FDAWU) to provide relevant assistance to former employees affected by the closure."

AsiaOne has reached out to Twelve Cupcakes for more details. 

The dessert chain has not announced the news on its social media platforms. Its last post on Oct 29 was to encourage customers to buy its 10 mini cookie bundle. 

Twelve Cupcakes also posted an Instagram story on Oct 29 encouraging customers to purchase its Halloween cupcakes. 

The chain had 20 outlets in Singapore, according to its website.

The confectionary was founded by former model Jaime Teo and radio DJ Daniel Ong in 2011. It was later bought over by Kolkata-based Dhunseri Group in 2016 for $2.5 million. 

In response to AsiaOne's queries, Daniel shared that he has not been involved in any aspect of Twelve Cupcakes since he and Jaime sold the brand. 

AsiaOne has also reached out to the group as well as Jaime. 

In January 2021, Twelve Cupcakes, under its new owner, was fined $119,500 for underpaying seven of its foreign employees. 

The company was convicted on Dec 10 the previous year of 15 counts of underpaying the employees in 2017 and 2018.

In March 2021, Jaime was fined $65,000 for failing to prevent the business from underpaying its foreign workers.

She pleaded guilty to 10 charges under the Employment of Foreign Manpower Act in Feb 2021 and 14 other charges were taken into consideration during the sentencing. 

Later in May 2021, Daniel was also fined $65,000 for the same reason. He pleaded guilty to 10 charges under the Employment of Foreign Manpower Act, with another 14 similar charges taken into consideration for sentencing. 

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melissateo@asiaone.com