Over 100 employees from Singaporean hospitality group Tipsy Collective, who were affected by delays in their October salary payments, were fully compensated by December 2024 following fresh investor funding from four of the company’s shareholders.
According to The Straits Times, the shareholders injected an undisclosed sum to stabilise the business, enabling the company to settle outstanding salaries and CPF contributions for September and October 2024.
Operations staff were fully paid by mid-November, while 20 headquarters employees received their full salaries in late November.
Established in 2019, Tipsy Collective operates 10 restaurants and bars in Singapore and one in Kuala Lumpur. Its recognisable brands include Tipsy Unicorn and Tipsy Flamingo.
Facing legal disputes and financial challenges, the company has closed two bars and one restaurant since October 2024. A spokesman confirmed to The Straits Times that affected employees were reassigned to the remaining seven outlets.
While funding requests were made to all six of the group’s shareholders—including co-founder David Gan and former chief operating officer Reuben Low—only Steady Property Trading, Novus International Enterprises, White Rock Asia Resources, and Singaporean Tora Widjaja, who together hold 59.39% of the company’s shares, contributed the new funds.
A recap of the company’s legal disputes
In August, Gan filed a lawsuit against eight parties, including the company’s shareholders and investors, accusing them of breaching a shareholders’ agreement and attempting to take control of the company.
The defendants accused Gan and late co-founder Derek Ong of financial mismanagement, citing examples such as the beach club Tipsy Unicorn’s construction budget doubling from S$3 million to S$6 million and debts of S$5.2 million to suppliers, contractors, and creditors.
Gan sought a temporary injunction to retain control of the board, but the High Court denied the request on October 15, 2024, allowing the majority shareholders to appoint new directors.
The company underwent a management change in November 2024, dismissing Gan as CEO, though he remains one of three directors.
The other directors are Indonesian businessmen Santosa Kadiman and Reino Ramaputra Barack. Barack has since been appointed chairman, with a new CEO taking charge.
Tipsy Collective’s spokesman shared that the new management is working to stabilise the company, a process that is expected to take six to 12 months due to challenges inherited from the previous administration.
Key strategies include rebuilding confidence with partners, landlords, and suppliers, as well as closing underperforming outlets like Tipsy Panda, O/T Bar in Woodsquare, and Wallich Manor in Sofitel Singapore City Centre.
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.
Featured Image Credit: Tipsy Collective
