‘Unacceptable and irresponsible’: Union raps Twelve Cupcakes for abrupt closure, axing of 80 workers
The Food, Drinks and Allied Workers Union says it was not given advance notice even though the company was unionised
[SINGAPORE] About 80 workers were affected by the closure of Twelve Cupcakes, said the Food, Drinks and Allied Workers Union (FDAWU) on Thursday (Oct 30).
The local cupcake chain – founded by former model Jaime Teo and former radio DJ Daniel Ong – closed down suddenly on Thursday, a day after being placed under provisional liquidation, a notice on its website stated.
Twelve Cupcakes, which was sold to India-based Dhunseri Group in 2016 for S$2.5 million, did not give the FDAWU advance notice of its liquidation. This was despite it being a unionised company under the FDAWU.
Instead, the union learnt of the cupcake chain’s decision on Wednesday, the same day the company broke the news to its workers.
The FDAWU, which is an affiliated union of the National Trades Union Congress (NTUC), called the bakery’s sudden closure “completely unacceptable and unfair to both the workers and the union”.
“This abrupt move has created significant uncertainty and distress for about 80 affected workers, including rank-and-file workers, executives and managers,” it said. Twelve Cupcakes is believed to have about 20 outlets.
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The closure has left workers struggling to secure alternative employment on short notice, creating “uncertainty regarding their livelihoods and the payments owed to them”, added FDAWU.
Employees of the cupcake chain told The Business Times that they were informed of the company’s liquidation via WhatsApp at 8 pm on Wednesday and terminated with effect from that day.
They also received a termination letter and a proof of debt document to submit claims against the company for arrears, notice pay and holding pay.
FDAWU said: “The union strongly objects to the business owner’s complete lack of prior consultation and advance notice of their decision.”
It noted that Twelve Cupcakes did not engage with it early to discuss alternatives or support measures for the confectionary chain’s workers.
The union added that while the business owner’s decision may have been a “commercial one”, its execution was “not only irresponsible” but also lacking in due process.
“The abrupt termination and insufficient notice are failures on the part of the business owner to consider the human consequences of the closure,” it continued.
FDAWU said it will be assisting members and workers with salary-related claims and job-assistance support, as well as connecting them to the labour movement’s network, such as NTUC’s Employment and Employability Institute.
The union added that it has called on the appointed liquidator AAG Corporate Advisory to collaborate with it, so that benefits under the collective agreement are considered as part of the workers’ preferential claims.
In response to queries from BT, the liquidator said that it is unable to provide details in operations, finances or the reasons for the liquidation before obtaining the relevant information.
It will meet creditors within the next four weeks to update on the status of the liquidation, in accordance with insolvency laws.
“We are also working with the FDAWU to provide relevant assistance to former employees affected by the closure,” a representative from AAG Corporate Advisory said.
Underpaying employees
In December 2020, Twelve Cupcakes pleaded guilty to 15 charges of underpaying employees in 2017 and 2018 – an offence under the Employment of Foreign Manpower Act.
Its co-founders Teo and Ong, who were formerly married, also faced 24 charges each over offences under the Act. The pair had allegedly allowed Twelve Cupcakes to underpay foreign workers between 2013 and 2016, with some workers reportedly not receiving income for periods between 2012 and 2013.
In January 2021, the company was fined S$119,500 for underpaying seven foreign workers, including one employee who at times was paid half of the wages.
In February that year, Teo pleaded guilty to 10 charges under the Act and was later fined S$65,000 for failing to prevent Twelve Cupcakes from underpaying its foreign workers. In May 2021, Ong was also fined S$65,000 after pleading guilty to 10 charges.
Twelve Cupcakes was loss-making for the past three financial years, Handshakes data showed, with its net loss widening to S$1.2 million in the latest financial year ended Mar 31, 2025, from S$1.1 million previously.
Additional reporting by Chloe Lim
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