About 80 workers affected by Twelve Cupcakes’ closure; union says sudden notice 'unacceptable and unfair'

SINGAPORE: The decision by bakery chain Twelve Cupcakes to cease operations was made without advance notice, the union said on Thursday (Oct 30), criticising the sudden move as "completely unacceptable and unfair" to workers. 

About 80 employees have been affected, including rank-and-file workers, executives and managers.

Twelve Cupcakes announced its closure on its website, saying it had been placed under provisional liquidation with effect from Wednesday. It operated outlets at locations including Changi City, Sentosa and Star Vista.

In a media statement, the Food, Drinks and Allied Workers Union (FDAWU) said it was only informed of the closure on Wednesday, on the same day as the company’s announcement to its workers.

"The union strongly objects to the business owner’s complete lack of prior consultation and advance notice of their decision," said FDAWA, adding that despite being a unionised company, 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," it said. 

"The abrupt termination and insufficient notice are failures on the part of the business owner to consider the human consequences of the closure. Workers are left struggling to secure alternative employment on short notice, resulting in uncertainty regarding their livelihoods and the payments owed to them."

Twelve Cupcakes was founded in 2011 by former radio DJ Daniel Ong and his then-wife Jaime Teo. Following their divorce in 2016, Ong and Teo sold the company to India-based conglomerate Dhunseri Group.

“The sudden notice is completely unacceptable and unfair to both the workers and the union," said FDAWU General Secretary Sankaradass.

He added that FDAWU has called on the appointed liquidator to collaborate with the union on workers' claims.

The liquidator, AAG Corporate Advisory, told CNA on Thursday evening that it is "working closely" with the union to provide "appropriate assistance" to affected employees.

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

"At this stage, we are unable to provide further details regarding the company’s operations, finances, or the reasons for the liquidation until we have obtained and verified the relevant information."