Unpaid staff may be ahead of most creditors when a company goes belly up – but will they ever see a dime?
If there is enough to go round, the next question is when they will be paid
[SINGAPORE] The sudden closure of Twelve Cupcakes last week once again shone the spotlight on axed workers left in the lurch, unsure if they will receive owed salaries and Central Provident Fund (CPF) contributions.
The company has called for a meeting with creditors on Nov 24 to, among other things, provide a statement of its affairs and the estimated amounts of creditors’ claims.
The closure affecting the bakery chain’s 80 staff is only the tip of the iceberg. From Jan 1 to Oct 23, 2,431 food and beverage (F&B) businesses have gone bust, Deputy Prime Minister and Minister for Trade and Industry Gan Kim Yong said in Parliament on Wednesday (Nov 5).
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