Stickies Bar staff in limbo over unpaid salaries and threat of layoffs

SINGAPORE: At the start of the year, employees of local pub and eatery chain Stickies Bar were looking forward to getting their salaries for December.

What many of them didn't expect was to spend the next few weeks fighting to be paid by a company on the hook for at least S$200,000 (US$149,000) in debt.

Stickies has also abruptly laid off about a fifth of its workforce and told more to leave on Jan 31, according to employees who spoke to CNA.

The F&B establishment, which is not unionised, closed two of its outlets in Aljunied and on Keng Cheow Street near Clarke Quay on Jan 15.

A branch at Sunset Lane was not open for business when CNA visited on Tuesday (Jan 23) at about 5pm. The outlet at Dhoby Ghaut was operational when CNA checked on Monday.

Apart from unpaid salaries, all of Stickies' employees have not received their Central Provident Fund (CPF) contributions since November, according to workers CNA spoke to.

As of Monday, 37 Stickies Bar employees had approached the Tripartite Alliance for Dispute Management (TADM) for assistance with their salary claims, the alliance and the Ministry of Manpower (MOM) said in response to queries from CNA.

"TADM has concurrently referred the matter to MOM for investigations on possible breaches of the Employment Act," they said.

"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," TADM and MOM said, adding that workers who require assistance on salary claims should approach the alliance early. 

Also responding to questions from CNA, the National Trades Union Congress reiterated that affected workers can approach e2i for job placement assistance and career guidance, as well as TADM.

On Thursday afternoon, Stickies Bar CEO Norman Then told CNA the firm has engaged licensed insolvency practitioner Mr Farooq Mann of Mann & Associates as interim judicial manager.

This is to “protect the going concerns of the business and to look out for the best interest of all the creditors including the staff”.

“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,” added Mr Then.

"WORK HARD SO WE CAN PAY YOU"

Some Stickies staff, who have been with the company for at least a year, told CNA that delays to their salary payouts and CPF contributions had been happening throughout 2023.

Their issues were first reported by alternative news source Wake Up Singapore on Monday.

"We always tried to be understanding about the bosses' situation and even though payment was late, they always did pay previously," said Taryn, a human resources (HR) manager at Stickies Bar who only wanted to be known by her first name.

But things started going south when December salaries remained unpaid for the majority of staff.

When pressed for answers, Stickies owners Mr Then and Mr Chong Sing Yong initially told employees they would be paid on Jan 8, said Taryn, who is currently on unpaid maternity leave.

"The eighth came, they said: 'Sorry, there's not enough money … We will pay you all on the 15th,'" she recalled. "'Please help us work hard, push sales at the outlets so that we can pay you.'"

But on Jan 15 - the same day two Stickies outlets were shuttered - the owners announced to employees that they had applied for interim judicial management. This is a method of debt restructuring where an independent manager is appointed to manage the affairs, business and property of a company under financial distress.

According to Taryn, the owners said they did not have "control" over their bank accounts and would not be able to pay the staff; and that the government would eventually pay them.

Employees who spoke to CNA said there was no proof or documentation of the filing for interim judicial management.

A current staffer, who wanted to go by her first name Maya, said the owners made no mention of bankruptcy. Instead they again stressed that they were trying to increase sales to make money.

"(The owners) said that they cannot afford to carry on because they owe the vendors for the liquor, food and the rent," added Maya, who did not want to reveal her position in the company.

"They wanted to keep a lean manpower so that they can try to settle as much as possible and make more profit."

THREAT OF LEGAL ACTION

CNA has also seen lawyers' letters representing various companies sent to Stickies Bar and its owners, stating failure to pay debts and warning of legal action.

One of them, dated Jan 3 and posted by lawyers from Kishan Law Chambers, said the F&B company owed the Platinum Wines & Spirits distributor more than S$200,000 for goods sold and delivered. 

When contacted by CNA, the lawyers confirmed that their client had commenced legal proceedings against Stickies Bar. "No payment was made by Stickies Bar Pte Ltd towards settlement of the outstanding sum to-date," they added.

Another set of lawyers' letters was affixed to the front door of the Stickies @ Dhoby Ghaut branch when CNA visited on Monday. The bar opened as usual at 5pm on that day, and patrons were seen entering about 10 minutes later.

These letters, dated Jan 19 and undersigned by Mr Jonathan Wong of Bayfront Law, said that Stickies Bar owed over S$32,000 to private equity investment firm Tonghuai @ Nanhang.

NOTHING TO DO BUT WAIT

Stickies abruptly laid off about 20 full-timers at the start of the year, according to employees who spoke to CNA.

The retrenchments were from the headquarters team comprising departments such as marketing and finance.

Staff said that Mr Then had asked the workers to resign; and those who didn't want to had their contracts terminated at the start of January.

The handful left in the team have also been told to leave on Jan 31 and look for employment elsewhere, CNA has learnt.

Maya, who is one of the remaining employees and also one of those who is owed her salary, said: "I just feel that they are leading us on and I know for sure that they're not going to pay us."

Taryn, a mother of six and the sole breadwinner of her family, was not too hopeful either.

She pointed to a colleague who reached an agreement with Stickies through TADM, but has yet to be paid.

Both current and ex-employees told CNA all that was left to do was wait.

A former staffer, who only wanted to be known by her first name Joey, resigned on Dec 19 after six months with Stickies, citing "red flags" raised by delayed salary payouts.

She had received her pay for November just the day before - on Dec 18, more than seven days after the end of the salary period, which is the rule under the Employment Act. 

She said she has yet to receive S$16,000 owed in outstanding salaries and claims.

"I am just hoping that the bosses or at least the CEO keeps his promise, even if it takes a while, to eventually pay us back our salary, and not just disappear," said Joey, who has filed the necessary complaints and claims. 

"Hopefully they're not just buying time before eventually declaring bankruptcy and going into liquidation because (then) obviously we won't (be able) to get anything."