Twelve Cupcakes SG criticised for ‘irresponsible’ closure and lack of due process

The Food, Drinks and Allied Workers Union (FDAWU) has criticised Twelve Cupcakes for what it described as a lack of due process and consultation in the lead-up to its closure.

According to Channel NewsAsia (CNA), the union said it was only informed of the company’s shutdown on Wednesday, the same day Twelve Cupcakes revealed its liquidation to employees. FDAWU said the company, despite being unionised, had failed to engage the union early or explore alternative options to support affected workers.

The union reportedly added that while the business decision may have been commercial in nature, its execution was irresponsible and failed to account for the human impact. Workers were reportedly given insufficient notice and were left scrambling to secure alternative employment while facing uncertainty over owed payments.

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FDAWU general secretary Sankaradass also reportedly said that the sudden notice was “unacceptable and unfair” to both the workers and the union. He added that the union has called on the appointed liquidator to work closely with FDAWU to address employee claims.

The comments follow Twelve Cupcakes’ announcement that it has been placed under provisional liquidation and has ceased operations as of 29 October 2025.

In a statement on its website, the company said, “We sincerely apologise for any inconvenience caused and would like to express our heartfelt thanks for your kind support and partnership over the years.”

The brand, founded in 2011, had been a popular player in Singapore’s dessert scene, known for its variety of cupcakes and baked goods.

MARKETING-INTERACTIVE has reached out for more information.

The shuttering of Twelve Cupcakes marks a turning point for a brand once seen as a local success story. Twelve Cupcakes is currently owned by Indian tea company Dhunseri Group, which bought the brand in 2016 for SG$2.5 million from its founders, local radio personalities Daniel Ong and Jamie Teo.

Although the company’s 2021 conviction for underpaying employees occurred after the sale, Ong and Teo were also reported to have allowed the chain to underpay the wages of its foreign staff between 2013 and 2016. According to The Straits Times at the time, there were also instances where some workers, between 2012 and 2013, did not receive any income.

In 2021, Twelve Cupcakes was fined S$119,500 for underpaying seven employees, according to multiple media reports. The company was convicted under the Employment of Foreign Manpower Act on 15 counts of underpaying its employees in 2017 and 2018.

Citing court documents, reports stated that all seven employees were S-Pass holders at the time of the offence. While their monthly salaries ranged from SG$2,200 to SG$2,600 each, Twelve Cupcakes only paid them between SG$1,400 and SG$2,050. In May 2018, the company reportedly paid them their full salaries but instructed them to return a portion in cash.

Twelve Cupcakes’ closure comes amid a challenging period for Singapore’s F&B landscape. Just two months earlier, Privé Group revealed the closure of all its outlets effective 1 September 2025, citing rising operational costs and difficult market conditions.

In a statement released at the time, Privé called the decision “incredibly tough” and expressed gratitude to customers, staff, and partners. The company said it was seeking professional financial advice to guide its next steps.

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