Ovens go cold at F&B chain Bakerzin after 22 years
Singapore
SINGAPOREAN restaurant chain Bakerzin is pulling the plug on its flagging business after over two decades of operations, The Business Times (BT) understands.
All of Bakerzin's five outlets have closed, and the company on Monday gave notice of a creditors' meeting for the purpose of winding up. One of the items on the agenda is to confirm the appointment of the liquidator.
BT understands that Bakerzin has also approached Gardens by the Bay, where it has an outlet, to allow it to cease operations before the end of its lease, which is supposed to run till mid-next year.
YTL Starhill Global Reit Management, which manages Wisma Atria, said its policy is not to comment on a single tenant. However, it added that "given the severity of the pandemic, it is inevitable that there may be tenants who would be facing some pressure".
Even in the months before this, it appears that Bakerzin had already been winding down its operations. In August, the company announced that it would be temporarily halting the sales of confectionery and meals on its online store so that its research and development chefs and production team could put their "full attention and time into crafting the best delicacies of mooncakes".
Then last month, UOL, which manages United Square shopping mall, where Bakerzin has an outlet, told BT that Bakerzin's lease was expiring and that its space would be taken up by Italian restaurant chain Peperoni Pizzeria in "early 2021".
Raffles Medical Group declined to comment on Bakerzin's outlet at Raffles Hospital when approached by BT in September.
A source within Bakerzin said sales had fallen about 70 to 80 per cent during the "circuit breaker" period and have continued to stay depressed even as dining in at restaurants has resumed. The source also said that the company had let go of some employees in a bid to cut costs, although the person was unable to say how many.
Yet, it appears that Bakerzin's woes pre-date the pandemic - financial filings show that the business has made losses since 2015. That year, the company made a loss after tax of S$4.7 million despite revenues of S$12.3 million.
Similarly, for its financial year ended June 2019, Bakerzin recorded revenues of S$8.3 million and a loss after tax of S$5.8 million. Meanwhile, its total liabilities have increased, from S$13.9 million in FY2015 to S$37.7 million in FY2019.
The restaurant chain has also shrunk its physical footprint over the years. At one point, it operated out of 10 locations including Paragon, Northpoint, Jurong Point and VivoCity. But those were eventually reduced to the current five.
Rising rents may be one reason. Asked by Today in 2016 why he sold Bakerzin, Daniel Tay, the original founder, had said: "Sales are no longer substantial enough to cover rentals." In 1998, Mr Tay had started Bakerzin, known then as Baker's Inn till it was renamed in 2004. He sold the company in 2007 and managed it till 2013.
Mr Tay now runs Cat & The Fiddle, a cheesecake business, and traditional pastry brand Old Seng Choong.
Bakerzin's operations were taken over by private investors Jeswant Singh and Jamil Amin. Mr Amin was also the vice-chairman of the Autism Association of Singapore until he stepped down on Sept 26 as part of board renewal.
Mr Amin declined to comment when approached by BT.
Bakerzin's winding up would come on the heels of other household brands that have faded from the scene in recent months, such as Home-Fix and sports retailer Sportslink. Its move also reflects how the current pandemic has forced the hand of struggling businesses, particularly those in the food and beverage sector, where profit margins are typically low single digits.
China Club at Capital Tower, for instance, closed in May after suffering years of losses amid stiff competition and rising costs.
