Flash Coffee has confirmed with Mothership that it ceased operations islandwide.

Several stores around Singapore were observed to be closed, with some displaying notices that the employees were "on strike".

However, Flash Coffee claimed that the employees were not "on strike", but were instead "not required to report to work".

Stores closed, pastries left behind

A Mothership reader shared a photo on Oct. 12 of an empty and cordoned-off Jurong Point outlet.

The outlet is currently labelled as "temporarily closed" on Google Maps.

The same goes for the Flash Coffee outlet at Hougang RiverCourt.

When Mothership went down on the evening of Oct. 12, the storefront was dark.

Staff from a shop nearby shared that the outlet had been closed for the past two days.

Pastries and snacks were not thrown away and were still sitting in the display case.

None of its stores are available on its app for order pick-ups or delivery.

Workers apparently "on strike"

A notice at the Jurong Point outlet was apparently put up by Flash Coffee baristas themselves.

The notice claimed that the baristas were on strike due to "several late salary payouts" and had decided to close the store "indefinitely".

Speaking with Mothership, a person who claimed he was a part-time barista with Flash Coffee, and who preferred to remain anonymous, claimed that the notices and indefinite closure of the outlet by its staff were indeed a "group effort" and "unanimous decision" by employees.

The barista claimed that Flash Coffee had been late in salary payouts to its baristas for the past few months "without any clear reasons".

"For the past two months, none of us have gotten our salaries fully credited due to lack of funding from external investors," he claimed.

He also claimed that baristas had to continue working for the past few months despite lacking ingredients and cash.

Staff typically receive their pay by the seventh day of each month. However, the barista alleged they did not receive their salaries in October, and the management purportedly remained "radio-silent".

Baristas receive letters of termination

The barista, who claimed he was working at the Guoco Tower outlet, also shared a letter of termination he received on Oct. 12.

The letter states that Flash Coffee was placed under provisional liquidation on Oct. 9 and that BDO Advisory would be appointed as the joint and provisional liquidators of the company.

Employees who received the letter would be terminated with immediate effect and were required to return any keys, documents and other equipment belonging to the company.

Prior to receiving the letter, the barista said he was invited to a video call via a WhatsApp message sent out to staff group chats.

While he had expected some answers regarding the late salary payouts, he claimed he was informed that the company would surrender its assets.

"Nobody saw the termination of Flash Coffee Singapore coming so abruptly as we just collaborated with Lotus Biscoff to roll out a new series of drinks," he said.

A check of the Accounting and Corporate Regulatory Authority's (ACRA) Business Filing Portal showed that the company has indeed filed for liquidation.

Companies unable to pay off their debts can propose a voluntary winding up of the company.

According to the Insolvency, Restructuring and Dissolution Act, a company is deemed "unable to pay off its debts" if it cannot satisfy its liabilities to a creditor it is indebted for more than S$15,000 within three weeks.

Workers not on strike: Flash Coffee

In response to Mothership's queries, Flash Coffee confirmed that it has ceased operations at its 11 stores in Singapore.

This decision was not made lightly, it said, but the company "in line with [its] unwavering commitment to building a profitable and sustainable business" has "decided to further consolidate [its] future efforts and to double down on [their] most promising markets".

Flash Coffee stated that most of its markets have shown "tremendous traction", with "some of the markets nearing EBITDA (earnings before interest, taxes, depreciation and amortisation) break-even in the coming months already".

It reiterated that contrary to reports, its staff in Singapore are not "on strike". As it has ceased operations at its stores, baristas are "not required to report to work".

Flash Coffee added that the "well-being and future" of its employees remains its "utmost priority" and that it is "proactively assisting" its team members.

It claimed that most of its Singapore head office staff have been offered roles in other markets or with their regional team.

The company also claimed it was "actively trying to connect [its] baristas with opportunities in other coffee chains".

Flash Coffee has over 200 stores globally.

In May 2023, Flash Coffee raised US$50 million (S$68.4 million) in its extended Series B funding round, reported Nikkei Asia.

The cash would reportedly be used to expand Flash Coffee's footprint in Singapore, Indonesia, Thailand, Hong Kong and South Korea.

Top photo from Mothership and Mothership reader