Defunct coffee chain Flash Coffee owes nearly S$15 million to its creditors, including about S$300,000 to its employees.
Flash in the pan
According to a report by CNA, the coffee chain owed up to S$14.9 million to around 120 creditors, including S$300,000 to its employees for salaries and other benefits.
BDO Singapore told the news outlet that it was unable to comment on when employees could expect to receive what they were owed as they are "still in the midst of taking assets into custody".
Such assets, including equipment, were being taken into custody for sale, and debts would also be collected on behalf of Flash Coffee.
The firm, currently responsible for the liquidation of Flash Coffee Singapore's operations, would subsequently sell off the chain's assets in order to pay off its creditors, but it did not have a timeline for how long that would take.
S$13.4 million of the total sum owed is to Digital Services SG Four, Flash Coffee's holding company, reported The Straits Times.
Aside from owing former employees, Flash Coffee also owes its landlords amounts ranging from S$80,000 to S$140,000.
Closures and workers
According to the Food, Drinks and Allied Workers Union (FDAWU), Flash Coffee owed its employees 75 per cent of their salaries for September 2023, the work done until Oct. 12, as well as the encashment of the remaining days of leave they have.
Flash Coffee’s closure came to light when videos on social media showed the coffee chain's various outlets, particularly one in Jurong Point, having been closed for several days.
Affixed to the outside of some of these outlets was a sign saying that workers were on strike, due to late salary payouts.
It was later confirmed with Mothership that Flash Coffee had ceased operations, and that employees were "not on strike" but were instead "not required to report to work".
An employee that Mothership spoke with confirmed that Flash Coffee had only paid them in part in the run up to the closure, and that they had received letters of termination on Oct. 12.
The FDAWU said on Oct. 14 that Flash Coffee’s workers did not have plans to put up any coordinated action after learning of the company's closure, and that the union would assist the employees with salary related claims as well as job assistance support.
Flash Coffee was founded in Singapore, and has over 200 stores globally, particularly in Indonesia, Thailand, Hong kong, and South Korea.
At its peak it had over 30 locations in Singapore, with 11 operating at the time of its closure.
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Top image via Mothership