Stickies Bar closes 3 out of 4 outlets & allegedly owes staff salaries, MOM investigating
The bar's CEO asked people to help support their last outlet at Dhoby Ghaut and that they would "do right by all stakeholders".It was 40-year-old Win's first full-time job after five years as a food deliveryman.
Win took up the offer to work as an outlet manager with Stickies Bar in October 2023 because he thought it would provide stability for his family of three.
Fast-forward to January 2024, he finds himself strapped for cash again because the company has not paid him his salary for the month before.
The stress of being unable to pay bills and his daughter's daily expenses has made him think it's the end for him and his family.
He's not the only one facing such a situation due to Stickies Bar's recent alleged layoffs and salary non-payments.
More than 60 employees unpaid
According to current and former employees who contacted Mothership, more than 60 employees, including about 40 full-time staff and over 20 part-time staff, have not been paid their salaries for December 2023.They were supposed to receive their salaries on Jan. 8, 2024.
After multiple delays, on Jan. 15, the company directors announced that two of their four outlets — at Aljunied and on Keng Cheow Street, would be shuttered, and the company would undergo an interim judicial management. A third outlet at Sunset Lane has also closed as of Jan. 24.
Judicial management is a method of debt restructuring in which an independent judicial manager is appointed to manage a company's affairs, business, and property during financial distress.
The company is also temporarily shielded from legal proceedings by third parties, allowing it to rehabilitate.
"We are sorry if we've put anyone's livelihoods at an inconvenience, but it was [a] consequence we could not avoid," one of the directors wrote in the announcement to the staff.
Allegedly forced employees to resign
Around 15 employees were asked to resign in early January 2024.Maya, 48, a human resources manager at Stickies, shared that the company initially intended to terminate several employees but opted to demand the resignations when advised about the legal implications.
Within two days, Maya allegedly received over 10 resignations from employees who claimed they were asked to do so by one of the directors.
Allegedly, he told them to resign within two weeks and promised to pay them their salaries by the end of January.
Others tendered their resignations when they did not receive their salaries for December.
When asked why she did not leave, Maya said: "I can't leave now because I want to compute everybody's final salary till their last working day and send it to MOM and the TADM (Tripartite Alliance for Dispute Management) officer."
On Jan. 24, Maya updated Mothership, saying she had tendered her resignation that day as she could no longer handle the stress and "drama".
CPF and staff benefits also allegedly not paid
Other than salary, the company was also alleged to not have contributed to the employees' Central Provident Fund (CPF) since November 2023 and to not have given at least one employee one month of her maternity leave pay.Speaking to Mothership, Taryn, 35, said she "never imagined" that she would be going through this ordeal while on maternity leave.
The mother of six added that it has taken a toll on her as she is the family's sole breadwinner.
The story is no different for J, 30, a former chef at Stickies, who struggles to cover her monthly bills and dog's veterinary fees.
The former corporate chef at Stickies, C, 50, shared similar financial difficulties in caring for parents.
One director went on holiday
Employees said they were also shocked to discover that one of the directors was on holiday in Bali amidst the chaos.When outraged employees questioned him, he said his wife paid for the trip.
"If they had any empathy for the employees, they wouldn't be flying away on a holiday," Maya said.
"People have no money to eat, no money to travel," she continued. "Taryn and I have helped them reach out to organisations where they can get financial assistance."
Maya's voice quivered as she acknowledged, "Honestly, I know none of us are going to be paid."
Directors did not respond to TADM officer's request
Most employees who spoke with Mothership said they had filed disputes with the TADM to claim unpaid salaries.However, the directors have not responded to the TADM officer'srequest for a proposal regarding how the disbursement of the late salaries will be carried out, Maya shared.
A mediation session with TADM and the employees scheduled for Jan. 25 has been postponed after an IJM officer was officially appointed on Jan. 24.
However, investigations by the Ministry of Manpower (MOM) into the case are ongoing as of Jan. 24, according to Maya, who also said she has agreed to help with the investigation.
MOM investigating
In response to Mothership's queries, spokespersons from the Ministry of Manpower (MOM) and Tripartite Alliance Limited (TAL) said that 37 employees of Stickies Bar Pte Ltd had approached the TADM to seek assistance for their salary claims as of Jan. 22, 2024.“TADM has concurrently referred the matter to the Ministry of Manpower (MOM) for investigations on possible breaches of the Employment Act.
TADM and MOM have also been working closely to provide affected employees with assistance, including helping them with their salary recovery and linking them up with the Employment and Employability Institute (e2i) if they require employment facilitation.
We would like to remind employers to pay salaries on time. Employees who require assistance on salary claims should approach TADM early at www.tal.sg/tadm/contact-us.”
One outlet remaining
Responding to Mothership's queries, Stickies' Chief Executive Officer Norman Then said that the company has engaged with a licensed insolvency practitioner, Farooq Mann, from Mann & Associates, in the capacity of an interim judicial manager.The move was made to "protect the going concerns of the business and to look out for the best interest of all the creditors, including the staff," the statement added.
"Stickies is determined to do right by all stakeholders and we hope to have the public’s support by their patronage at our outlet that is still running at Stickies @ Dhoby Ghaut."
