SINGAPORE: Bakery chain Twelve Cupcakes is being investigated for non-payment of salaries and other potential breaches of the Employment Act, the Ministry of Manpower (MOM) and the CPF Board said on Friday (Oct 31).
About 80 workers were affected by the company’s sudden closure, with the business saying it had been placed under provisional liquidation on Wednesday.
Employees told CNA that there was no prior notice from the management, and they only learned of the closure when liquidators arrived at the office.
Staff were owed salaries, and despite being a unionised company, Twelve Cupcakes did not engage the union early, before affected employees were notified.
Such behaviour is “irresponsible”, said MOM and the CPF Board.
“While retrenchments may be unavoidable, employees should be treated in a responsible and sensitive manner,” they added.
The CPF Board will file a Proof of Debt with the liquidator to recover outstanding CPF contributions for September and October.
CNA has contacted the parent company, Dhunseri Group, and Twelve Cupcakes CEO Juliana Lee for comment.
LOSSES SINCE 2023
The bakery operated outlets at locations including Changi City, Sentosa and Star Vista. In August, it opened a new outlet in Hougang Mall.
Financial statements show that the company has been in the red since 2023, when it made a total comprehensive loss of S$463,618 (US$356,100).
In the 2024 financial year, this figure grew to S$1,070,855, and S$1,233,943 the year after.
In its latest financial statement, auditors hinted at business uncertainty, with a note implying that the bakery could only be sustainable if it continued to depend on its parent company for financial support.
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