Flash Coffee has shut its Singapore operations to focus on other markets, the company told CNA on Friday (Oct 13) in response to queries about its business here.
The Singapore-based coffee chain had 11 outlets in Singapore, including one at Jurong Point where a sign on Thursday said employees were “on strike” over late salary payouts.
“Contrary to reports, our staff in Singapore are not on ‘strike’,” the company said.
“We ceased operations at our 11 stores, and consequently, our baristas are not required to report to work.”
Flash Coffee said that to build a profitable and sustainable business, it decided to “further consolidate our future efforts and to double down on our most promising markets”.
“To facilitate this renewed focus, we ceased operations in Singapore yesterday, comprising 11 stores out of our (around) 200 global stores,” it added.
A search on the Accounting and Corporate Regulatory Authority (ACRA) portal showed that the company’s status was “in liquidation – creditors’ voluntary winding up”.
Launched in 2020, Flash Coffee, with its iconic yellow storefront, also operates in Asian markets such as Indonesia, Thailand and Hong Kong.
In 2021, it had almost 30 outlets in Singapore.
Flash Coffee, a non-unionized company, said it is “proactively assisting” affected team members.
“Most of our Singapore head office staff have been offered roles in other markets or with our regional team. Additionally, we are actively trying to connect our baristas with opportunities in other coffee chains,” it added.
A union said on Friday night that Flash Coffee’s employees affected by the sudden closure of the outlets are owed outstanding salaries and Central Provident Fund (CPF) contributions. They also had prevailing leave entitlements.
Salaries owed to workers comprise the balance of 75 per cent of their September salaries, as well as wages for work done until Oct 12. It also includes the encashment of remaining leave days, said the Food, Drinks and Allied Workers’ Union (FDAWU).
“The workers engaged by the union shared that there were no explicit plans to put up any coordinated action following companies’ sharing of the situation at hand,” the FDAWU added.
The union also said it is assisting affected members with salary-related claims and will provide job assistance support.
CNA has contacted Flash Coffee to ask about the outstanding salaries owed to workers.