Crystal Jade closes another four outlets; termination notices issued to about 120 workers
Nine Crystal Jade restaurants remain open in Singapore, with no further outlet closures expected, its receivers say.
A view of the entrance to Crystal Jade La Mian Xiao Long Bao restaurant at i12 Katong mall in Singapore. (Photo: Facebook/Crystal Jade Singapore)
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SINGAPORE: Crystal Jade has closed another four outlets in Singapore, leaving nine restaurants in operation, with no further closures expected.
The four outlets that ceased operations on Tuesday (Oct 6) comprised three Crystal Jade La Mian Xiao Long Bao outlets at Bugis Junction, Toa Payoh, and i12 Katong, and a Crystal Jade GO at Punggol Oasis Terrace.
Termination notices were also issued to about 120 workers across the affected outlets and some corporate functions.
The closures are part of a reorganisation of Crystal Jade's Singapore business ahead of a proposed sale, said financial and risk advisory firm Kroll in a media release on Wednesday.
Kroll representatives were appointed receivers of the holding companies for Crystal Jade's Singapore and Hong Kong operations on Sep 29.
Receivership generally involves an appointed receiver taking control of certain assets of a company, typically to protect or recover their value.
The restaurant premises will be handed back to landlords, Kroll said.
"All affected employees have been informed directly and will receive salary payments up to their final date of employment. Restaurant staff will continue to serve their applicable notice periods and will be compensated in accordance with their employment contracts," Kroll added.
Employees requiring assistance regarding final pay or benefits may continue to contact the HR team.
Following the reorganisation, Crystal Jade's Singapore holding company will have about 210 employees, Kroll said.
Kroll said its representatives intend to market the business for sale as a going concern, with the objective of preserving the group’s established brands, restaurant operations and the value built over more than 30 years.
The proposed sale is intended to support the continuity and future growth of the business and is not expected to result in further operational restructuring.
The nine remaining restaurants in Singapore will continue operating as usual.
Separately, Crystal Jade Food Manufacturing, the group's central kitchen in Singapore, ceased operations on Monday.
The company operates outside the scope of the receivership. Its closure was decided by management as part of the group's broader restructuring efforts, Kroll said.
SUPPORT FOR AFFECTED WORKERS
Kroll said that it and Crystal Jade have been engaging the Food, Drinks and Allied Workers Union (FDAWU), and other associations since Sep 30 to support affected employees.
FDAWU, an affiliated union of the National Trades Union Congress (NTUC), said in a media statement on Wednesday that Crystal Jade is not unionised but that it was approached by the appointed receivers to support affected union members and workers.
"FDAWU is heartened that the union was proactively engaged by the receivers, enabling FDAWU to take action promptly to support union members and workers during this period of uncertainty and transition," the union said.
FDAWU and NTUC's Employment and Employability Institute (e2i) curated more than 400 job opportunities across the food manufacturing, food services, hospitality and wholesale and retail sectors.
Employer partners including Paris Baguette, Neo Group Bakery and Din Tai Fung conducted on-site interviews for affected workers during a communications exercise by Crystal Jade.
FDAWU representatives were also on-site to assist affected union members, address their queries and provide guidance on available support schemes.
NTUC's e2i was also on-site to provide information on career resources and support services, as well as career advice to help affected workers transition to new job opportunities.
Care packs containing daily essentials and groceries were also prepared for affected union members.
