Flash Coffee is shutting down its last 11 branches in Singapore, following an announcement that the company cannot sustain its operations due to ‘liability-related reasons’.
Established in 2020, Flash Coffee is a tech-enabled coffee chain appealing to tech-savvy young professionals in search of their daily coffee fix.
According to reports, Flash Coffee has accumulated debts exceeding $10.2 million, owed to over 150 creditors. Additionally, video footage circulating in the media depicts one of the company’s branches closed with a sign attributing the closure to a staff strike resulting from delayed salary payments.
At the same time, a company representative refuted any claims of a strike among the Singaporean staff.
The company stated its intention to concentrate on its operations in Hong Kong, reassuring that its recent operational adjustments will have no impact on its standing in the city.
As per a report in the Singapore-based Business Times, Flash Coffee is allegedly indebted to more than 150 creditors, with a sum exceeding S$14 million (equivalent to $10.2 million). The newspaper also noted that the coffee chain has not disbursed the most recent monthly salaries to its staff in Singapore.
In the past few months, the coffee chain with a tech focus has either temporarily or permanently shuttered several of its outlets throughout the city-state. On October 11, 2023, the company submitted a notice to local regulators, indicating its inability to sustain operations due to its liabilities.