Singapore MOM steps in with stern warning to Twelve Cupcakes after unpaid salaries affect 80 workers

Singapore’s Ministry of Manpower has issued a stern warning to bakery chain Twelve Cupcakes following the non-payment of salaries to 80 employees after the company abruptly ceased operations in October 2025, with affected workers now beginning to recover part of their wages through liquidation proceedings.

The warning, issued on 1 April 2026, followed investigations into the company’s closure, which the Ministry determined was caused by severe financial distress rather than a deliberate attempt to avoid paying employees.

Closure linked to financial distress

Investigations found that Twelve Cupcakes was placed into liquidation on 29 October 2025 by its parent company, Dhunseri Ventures Limited, after determining that the business could not continue due to an acute cash-flow shortfall.

Despite prolonged operating losses, the parent company had continued paying employee salaries in full up to September 2025. However, Twelve Cupcakes’ management was informed of the liquidation plans only one day before operations ceased, leaving employees unpaid for work completed between 1 and 29 October 2025. The salaries were due on 7 November 2025.

The Ministry said it assessed the case as a genuine business closure resulting from financial distress rather than intentional wrongdoing, and therefore determined that issuing a stern warning was the appropriate enforcement action.

Workers begin receiving partial salary payments

After months of engagement between the liquidator and the Food, Drinks and Allied Workers Union (FDAWU), affected employees began receiving a portion of their unpaid salaries from end-March 2026.

Salary payments are being made through the liquidation process based on verified claims and available funds. The appointed liquidator confirmed that employees would receive around 50 per cent of their admitted salary claims, as employee wages are prioritised under insolvency laws.

The total amount owed to creditors was reported to be slightly over US$750,000, with nearly 100 creditors involved. Due to limited funds, unsecured creditors such as suppliers and customers are unlikely to receive payments.

Union support and job placement assistance

The Food, Drinks and Allied Workers Union played a key role in supporting affected employees throughout the process. The union assisted workers with filing salary claims, completing documentation, and navigating the liquidation process, while also providing regular updates on the progress of payouts.

In addition, the union helped affected employees secure new employment opportunities. More than 400 job vacancies were shared with around 70 affected workers through the labour movement’s network, and onsite interviews were arranged with potential employers.

The union also provided interim financial support, including grocery vouchers, with more than S$9,000 distributed to affected workers since November 2025.

Background of Twelve Cupcakes

Twelve Cupcakes was founded in 2011 by entertainment artiste Jaime Teo and former radio DJ Daniel Ong and later gained popularity as a local bakery chain. The company was acquired by Dhunseri Ventures Limited in 2016.

The sudden closure in October 2025 drew criticism from the union due to the lack of prior notice to employees, with some former staff seeking assistance from authorities shortly after the shutdown.

Wage protection framework remains unchanged

In a parliamentary reply earlier in January 2026, Singapore’s Ministry of Manpower reaffirmed that employee salary claims are prioritised during corporate insolvency proceedings under the Insolvency, Restructuring and Dissolution Act. Employee wage claims rank above unsecured debts but remain below administrative expenses related to the liquidation process.

The Ministry also reiterated that employers are expected to prioritise wage payments and communicate early with employees and unions if business closure becomes unavoidable.

Authorities said they will continue to investigate and take action against companies that fail to comply with employment laws, particularly in cases involving unpaid salaries during closures.