Owed salaries, CPF contributions paid after fresh funding from investors
Hospitality group Tipsy Collective has repaid overdue salaries to over 100 employees after securing fresh funding from investors, according to reports.
The company, which operates a number of food and beverage outlets, had delayed salary payments for October, which were due on November 5.
The Straits Times, citing a spokesperson, reported that affected employees received their partial payments a few days late, but full salaries were eventually paid throughout November.
Operations staff received their October salaries by mid-November, while about 20 headquarters employees received their salaries later that month, according to the spokesperson.
In addition to full salaries, the company was also able to pay full Central Provident Fund (CPF) contributions that were owed to employees for September and October.
The company's delayed payments were resolved after four of the group's six shareholders injected an undisclosed amount of capital to stabilise the business, according to The Straits Times report.
The deferred payment comes as Tipsy Collective suffered from leadership and financial woes, which include a legal battle between its co-founder and shareholders.
Co-founder David Gan previously sued eight parties, including shareholders and investors, for breaching a shareholders' agreement. He also alleged that they were trying to seize control of the board.
But the defendants argued there were alleged issues under Gan's leadership, such as financial mismanagement. Gan was eventually terminated from his role as chief executive on November 6, before he stepped down as one of the company's three directors.
The remaining directors include businessmen Santosa Kadiman and Reino Ramaputra Barack, with the latter also appointed chairman of the board.
