Ramen chain Kanada-Ya closes all 3 outlets in S'pore due to 'challenging conditions' of F&B sector

Japanese ramen chain Kanada-Ya has closed down all three outlets in Singapore.

The outlets were located at PLQ Mall, Marina Square, and Jem, respectively.

In a bourse filing on the same day, Aspen (Group) Holdings Limited, which owns Kanada-Ya outlets in Singapore, said one factor behind its decision was the "challenging conditions of Singapore's food and beverage sector".

These included "elevated operating costs" and "soft consumer spending patterns", which have negatively impacted the restaurant chain's business in the sector and resulted in "continued operational losses".

Additionally, after the passing of the founder and executive director of the franchisor of the "Kanada-Ya" brand, its outlets in Singapore experienced "a significant reduction in marketing and operational support from the franchisor", said Aspen.

"In light of these cumulative challenges, the subsidiaries' operations are no longer sustainable," read the bourse filing.

Subsidiaries to undergo liquidation

Following an assessment of its subsidiaries' financial position, Aspen's board submitted that placing them under creditors' voluntary liquidation (CVL) is in the best interests of the company and its shareholders.

According to the bourse filing, the CVL will "enable Aspen to streamline its operations and focus its resources on its core business segment of property development".

Additionally, the decision is expected to improve the consolidated net tangible assets and earnings per share of Aspen for the current financial year, which will end on Jun. 30, 2025.

All Hong Kong outlets closed by Jun. 30

According to Kanada-Ya's website, the chain was founded by former keirin racer Kazuhiro Kanada in 2009 in Fukuoka, Japan.

Besides its outlet in Japan, Kanada-Ya has also opened overseas outlets in the United Kingdom and Hong Kong.

However, on Jun. 5, the chain announced that it would be exiting Hong Kong by the end of the month.

At its peak, the chain operated seven restaurants in Hong Kong, including one at Causeway Bay, reported HK01.

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