Twelve Cupcakes workers to get part of unpaid salaries; MOM issues stern warning to chain
The move comes about five months after Twelve Cupcakes’ abrupt closure.
A Twelve Cupcakes outlet at Jem shopping centre on Oct 31, 2025.
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SINGAPORE: Workers affected by the sudden closure of Twelve Cupcakes will begin receiving part of their unpaid salaries from the end of this month, their union said on Tuesday (Mar 31), with the bakery chain receiving a stern warning from the Ministry of Manpower (MOM) for its non-payment of employee wages.
Twelve Cupcakes abruptly ceased operations and entered provisional liquidation last October, affecting about 80 employees, including rank-and-file workers, executives and managers.
The Food, Drinks and Allied Workers Union (FDAWU), which was only informed of the closure on the same day, then criticised the sudden closure as "completely unacceptable and unfair". Affected staff members also told CNA that they were blindsided by the shuttering.
In a statement on Tuesday, the union said: “After months of sustained engagement by FDAWU with the liquidator since October 2025, affected Twelve Cupcakes workers will begin receiving a portion of their unpaid salaries from end-March 2026.”
“Throughout this period, FDAWU has worked closely with affected union members on their salary claims and guided them through the liquidation process and will continue to support them as the process progresses.”
MOM said on Tuesday its investigations revealed that the closure of Twelve Cupcakes was due to "severe financial distress, rather than a deliberate attempt to evade salary obligations".
According to the ministry, Twelve Cupcakes was only informed by parent company Dhunseri Group of its plans to place the chain in liquidation on Oct 28, 2025, one day before its closure.
The FDAWU was notified on the same day that the chain's management became aware of the liquidation.
Dhunseri Group placed Twelve Cupcakes into liquidation on Oct 29, 2025, after determining it could not meet its obligations on a sustainable basis owing to an acute cash-flow shortfall.
Although it continued to pay employees in full up to September 2025 despite ongoing losses, 80 workers were not paid for work done between Oct 1 and Oct 29, 2025. These wages were due on Nov 7, 2025.
The ministry noted that a liquidator had been appointed to manage Twelve Cupcakes’ affairs, including the distribution of remaining assets to creditors in line with the Insolvency, Restructuring and Dissolution Act, which ranks employees' salary claims ahead of all other unsecured debts.
"MOM therefore determined that a stern warning was the appropriate enforcement action in this case."
The union said the salary payouts are being made as part of the liquidation process and depend on the verification of claims and the availability of funds.
Most affected union members have been informed of the amount they will receive based on verified claims, while the rest are still being notified, it added. Further payments will depend on the progress of the liquidation.
ASSISTING AFFECTED WORKERS
FDAWU said it has been assisting affected union members since Twelve Cupcakes entered liquidation, particularly with unpaid salary claims and navigating the process.
This included helping members understand and complete required documentation, file proofs of debt with the liquidator, address queries on tax and procedural matters and regularly follow up on payout progress.
The Tripartite Alliance for Dispute Management (TADM) assisted 45 affected workers by reviewing their claims, while the FDAWU supported the workers to file their claims with the liquidators.
“Where updates were received from the liquidator, FDAWU proactively explained these developments to members, including advising them on the next steps, so that affected members remained informed throughout the process,” it said.
Members ready to take up new employment were linked to the labour movement’s network, including FDAWU and the National Trades Union Congress' (NTUC) Employment and Employability Institute (e2i), with more than 400 job vacancies shared among 70 affected workers.
The union also arranged onsite interviews to facilitate direct engagement with prospective employers.
“To help members cope with daily expenses during the period of transition, FDAWU extended financial assistance, including grocery vouchers, with more than S$9,000 disbursed since November 2025,” it said.
“FDAWU will continue to support affected members where possible and keep them informed as the case progresses.”
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.
In January 2021, Twelve Cupcakes, under Dhunseri Group, was fined S$119,500 (US$91,800) for underpaying seven employees about S$114,000 over two years, between December 2016 and November 2018.
At the time, the chain claimed that it had continued the practice that was installed by the previous management, by indicating on paper a salary that was higher than what the workers actually received.
Months later, Ong and Teo were each fined S$65,000 under the Employment of Foreign Manpower Act.
In an advisory to employers, MOM said that business closures should be conducted in a "responsible and sensitive manner".
"Employers should provide early communication to employees on the efforts to manage business challenges and the need for business closure, to give employees time to plan and adjust," the ministry added.
"If the company is unionised, the union should be notified early, before the affected employees are notified."
Employers are also advised to submit an early alert to MOM, to allow Workforce Singapore and e2i to reach out with information on government assistance schemes and employment facilitation support for affected employees.
