More than 100 employees of hospitality group Tipsy Collective who were affected by delayed October salary payments received all dues by December, after fresh investor funding ensured timely payouts and full Central Provident Fund (CPF) contributions.
The employees, who were supposed to receive their October salaries on Nov 5, initially received partial payments a few days late.
They were fully paid by mid-November after four shareholders injected an undisclosed amount of money to rescue the business. The funds were also used to pay the CPF owed to the employees for September and October.
With fresh funds injected, the company managed to pay salaries on time along with full CPF contributions on Dec 5.
The home-grown food and beverage operator has been grappling with legal disputes and financial instability. It has closed two bars and one restaurant since October. The workers were redeployed to the company’s remaining seven outlets, a spokesman said.
Responding to queries from The Straits Times, the spokesman said the October salaries, which were due on Nov 5, were paid only by mid-November to operations staff, while about 20 headquarters employees received their salaries in late November.
The company went through a management change in November amid an ongoing legal battle between its co-founder and shareholders.
The spokesman said funding requests were sent to all of the group’s six shareholders, who include co-founder David Gan and former chief operating officer Reuben Low.
However, only four shareholders – Steady Property Trading, Novus International Enterprises, White Rock Asia Resources and Singaporean Tora Widjaja, who together hold 59.39 per cent of the company’s shares – injected fresh funds “to help the company survive and retain the jobs of our people”, said the spokesman.
He declined to disclose the amount raised.
Ms Loo Chee Yen, 30, a supervisor at Tipsy Flamingo in Raffles City Shopping Centre, said some employees at her outlet were worried the company would collapse after their October salaries were not paid on time.
“I had to reassure them that the company is going through a transition and we should give the new management some time to take over,” said Ms Loo in Mandarin.
The Malaysian, who has worked at various bars and restaurants in Singapore – some of which have closed down – said: “But the culture at Tipsy is different. Here, we work like a big family and I told my team to trust that the new management would eventually make things right.”
Mr Jason Lim, 36, assistant manager at Tipsy Penguin in Tampines, said: “We were disheartened when the company suddenly faced these issues. It has always been a great place to work. With the new management in place, things are improving and we’re hopeful the company will bounce back and restore our confidence.”
ST reported on Nov 9 that more than 100 employees of Tipsy Collective were not paid their October salaries, in what was a sign of the firm’s worsening financial mismanagement amid its legal battle.
Mr Gan filed a lawsuit on Aug 5, 2024, against eight parties, including shareholders and investors, accusing them of breaching a shareholders’ agreement and attempting to seize control of the company.
The defendants alleged financial mismanagement under Mr Gan and late co-founder Derek Ong, citing examples like the doubling of the construction budget of beach club Tipsy Unicorn from $3 million to $6 million and debts of $5.2 million owed to suppliers, contractors and creditors.
Pending the outcome of the suit, Mr Gan tried to get an interim injunction to maintain control of the company’s board.
On Oct 15, the High Court dismissed his application, paving the way for new directors to be appointed.
On Nov 6, Mr Gan was terminated from his role as chief executive and later he stepped down as one of the company’s three directors. The remaining directors are Indonesian businessmen Santosa Kadiman and Reino Ramaputra Barack. Mr Barack has since been appointed chairman, with a new chief executive taking the helm.
In addition to salary issues, Tipsy faced significant debts.
The spokesman said the new management is working to stabilise the company, a process expected to take six to 12 months due to significant challenges inherited from the previous administration.
He outlined key strategies, including re-engaging partners, landlords and suppliers to rebuild confidence, as well as closing underperforming outlets like Tipsy Panda and O/T Bar in Woodsquare and Wallich Manor in Sofitel Singapore City Centre.
Mr Max Wong, 27, a supervisor at Tipsy Unicorn who was transferred from Wallich Manor after it shut on Dec 24, expressed trust in the company’s ability to navigate these challenges.
“I’ve seen a few outlets close, but staff are always reassigned to other locations rather than let go. That gives me confidence in the management,” he added.
Acknowledging the difficulties ahead, the spokesman emphasised the company’s commitment “to turn things around”.
The company is currently navigating a challenging period of transition and seeks the continued support of the community, partners and patrons, said the spokesman.
This article was first published in The Straits Times. Permission required for reproduction.
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