Crystal Jade shutters 4 more outlets, lays off 120 staff ahead of proposed sale

Crystal Jade has closed another four outlets in Singapore and laid off 120 employees.

This comes as part of its restructuring measures undertaken ahead of a potential sale, said Crystal Jade's receivers Kroll in a press release on Oct. 7.

The financial and risk advisory firm announced that the measures were aimed at "positioning the business for a proposed sale and supporting its long-term future."

The four outlets that ceased operations on Oct. 6 were three Crystal Jade La Mian Xiao Long Bao outlets located at Bugis Junction, Toa Payoh, and Katong i12, and one Crystal Jade GO outlet located at Punggol Oasis Terrace.

This move follows Kroll's appointment as receivers over the holding companies of both Crystal Jade's Singapore and Hong Kong operations on Sep. 29.

Consultation with unions

According to Kroll, the 120 employees terminated worked in both restaurants and corporate capacities.

This leaves Crystal Jade with approximately 210 workers and nine outlets remaining.

All affected employees were informed directly and will receive salaries up till their final day of employment, Kroll said.

Restaurant staff will continue to serve their applicable notice periods and will be compensated according to their employment contracts.

Kroll and Crystal Jade have engaged the Food, Drinks and Allied Workers Union (FDAWU), an affiliated union of the National Trades Union Congress (NTUC), among other associations to support affected workers since Sep. 30.

In response, FDAWU's General Secretary Sankaradass S/O S. Chami said:

"We know this will be a difficult and uncertain time for affected members, workers and their families. Our focus is to ensure that members and workers are treated fairly, kept informed and received the support they need and do not have to navigate this period of uncertainty alone."

He also added that they were working with NTUC’s Employment and Employability Institute (e2i) and employer partners to assist workers in finding new opportunities.

According to a statement, FDAWU and NTUC’s e2i connected workers with more than 400 job opportunities across various sectors, and engaged employer partners to conduct on-site interviews for terminated workers during the exercise.

These include the food manufacturing, food services, hospitality, and wholesale and retail sectors.

Partners also included other food and beverage (F&B) companies such as Paris Baguette, Neo Group Bakery and Din Tai Fung.

ST also reported that FDAWU representatives assisted affected union members by addressing their queries and pointing them towards available support schemes.

Care packs containing essential goods and groceries were also prepared for affected union members.

Central kitchen closes doors

Separately, Crystal Jade's central kitchen, Crystal Jade Food Manufacturing Pte Ltd, also ceased operations on Oct. 5.

Kroll said that the central kitchen operated outside the scope of the receivership.

Nevertheless, the decision was made by the company's management as part of the Crystal Jade Group's broader restructuring efforts.

Kroll also added that it does not expect further outlet closures in Singapore.

They intend to market the business for sale as a going concern, meaning that it is able to meet all financial obligations.

The nine remaining outlets in Singapore are:

• Crystal Jade Palace at Takashimaya Shopping Centre
• Crystal Jade Golden Palace at The Paragon
• Crystal Jade Pavilion at VivoCity
• Four Crystal Jade Hong Kong Kitchen outlets at Causeway Point, Takashimaya Shopping Centre, One Holland Village and Tampines 1
• Crystal Jade La Mian Xiao Long Bao at Changi Airport Terminal 1
• Crystal Jade GO at Changi Airport Terminal 4