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Workers Blindsided: Union Slams Twelve Cupcakes Abrupt Closure

 



A prominent homegrown bakery chain has ceased all operations in a sudden and controversial move, leaving approximately 80 employees without jobs and drawing sharp criticism from their union for a complete lack of advance notice. Twelve Cupcakes, which operated several outlets across the city, was placed into provisional liquidation, effective from a Wednesday in late October.

The Food, Drinks and Allied Workers Union publicly condemned the action, stating it was only informed of the closure on the same day it was announced to the workers. In a strong statement, the union labeled the move as completely unacceptable and unfair. It highlighted that despite the company being unionized, the business owner failed to engage in any prior consultation to discuss potential alternatives or support measures for the affected workforce. The union asserted that while the commercial decision to close may have been final, the execution was irresponsible and lacked due process, showing a failure to consider the human impact of the closure.

Accounts from affected staff reveal a day of confusion and shock. Employees reported that liquidators arrived at the company's office at approximately 5:00 PM on that Wednesday while staff were still working. Within an hour, they were informed that the company was closing and their jobs were terminated. One executive, who had been with the company for five years, expressed feeling lost and noted that the management provided less than one hour's notice before the end of the workday. The timing was particularly difficult as the closure occurred just two days before the scheduled payday, leaving workers uncertain about receiving their final wages.

Other kitchen and packing staff shared similar sentiments of unfairness. One baker, who had only been hired in early October and had not yet received his first paycheck, questioned the ethics of hiring new staff so close to a total shutdown. Multiple employees mentioned they had noticed red flags in the preceding weeks, such as kitchen supplies ceasing to be delivered, which led them to suspect the business was struggling. However, none anticipated the immediate and total closure. A packer in his mid-20s stated that the suddenness of the event left him feeling he had wasted a month of work and was now under significant stress to find new employment to support his family.

The appointed liquidator, AAG Corporate Advisory, has confirmed it is working closely with the union to provide appropriate assistance to the employees. The liquidator stated that it is currently gathering information and will convene a creditors’ meeting within the next four weeks as required by the Insolvency, Restructuring and Dissolution Act. The company, founded in 2011 by Daniel Ong and Jaime Teo, was later sold to the India-based Dhunseri Group. This is not the first time the chain has faced labor issues, having been fined in 2021 for underpaying several employees a significant sum in previous years.

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