80 ex-Twelve Cupcakes staff to get half their unpaid salaries after 5 months' wait, MOM issues warning

About 80 former employees of local bakery chain Twelve Cupcakes will begin receiving half of their unpaid salaries for October 2025, around five months after the company abruptly shut its outlets.

The payouts are being made through the liquidation process, according to the Food, Drinks and Allied Workers Union (FDAWU), as reported by The Straits Times.

The closure previously left dozens of workers facing uncertainty over their livelihoods and unpaid wages.

Workers to receive 50% of salary owed

The liquidator appointed to wind down the company confirmed that affected workers will receive 50 per cent of their admitted salary claims.

Speaking to ST, AAG Corporate Advisory liquidator Yessica Budiman said, "50 per cent of the admitted (salary) claim” will be paid based on priority rules under the Insolvency, Restructuring and Dissolution Act.

Affected employees were contacted via email on Mar. 31 to confirm their bank account details so payments could be processed.

MOM issues stern warning to employer

In a separate statement, the Ministry of Manpower (MOM) said it had issued a stern warning to Twelve Cupcakes over the non-payment of salaries to 80 workers.

The ministry said investigations found the company’s parent firm had placed it into liquidation due to financial distress.

“Dhunseri Ventures Limited had placed the company into liquidation on Oct 29, 2025, after determining it could not meet its obligations on a sustainable basis due to an acute cashflow shortfall.”

MOM added that it assessed the closure as a genuine business failure rather than an attempt to evade salary obligations.

“MOM assessed that this was a case of genuine business closure arising from severe financial distress, rather than a deliberate attempt to evade salary obligations.”

Union had been supporting affected workers since closure

FDAWU said the salary payouts followed “months of sustained engagement” with the liquidator since October 2025, according to The Business Times.

FDAWU general secretary Sankaradass Chami said: “Any further developments will depend on the progress of the liquidation process.”

The union had earlier said it was informed of the company’s provisional liquidation only on the same day workers were notified, creating “significant uncertainty and distress” for affected employees, as previously reported by Mothership.

Grocery vouchers and job opportunities provided

Besides assisting workers with filing claims and documentation, FDAWU also provided interim financial support.

According to the union, more than S$9,000 worth of grocery vouchers have been distributed since November 2025.

According to The Business Times, more than 400 job vacancies were also shared with about 70 affected union members through the labour movement’s employment network.

FDAWU said it will continue supporting workers as the liquidation process progresses.

Bakery chain shut suddenly in October 2025

Twelve Cupcakes abruptly closed all 20 outlets in October 2025 after being placed under provisional liquidation, leaving about 80 workers affected.

The union had earlier criticised the company for failing to provide advance notice of the closure despite being a unionised workplace.

The chain was founded in 2011 by former model Jaime Teo and former radio DJ Daniel Ong before being sold to India-based Dhunseri Group in 2016.

Top image via Twelve Cupcakes/Facebook