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Hello reader,
When I first found out that Flash Coffee was closing in Singapore, I was pretty sad about it. I’m a big fan of its chocolate hazelnut shake – the Nutella-esque flavors alongside the rich, creamy texture made it the perfect drink for a sunny afternoon.
I never got to drink it as much as I wanted to because it was a tad expensive and quite an indulgence. Now, it’s gone 😢.
Flash Coffee may have pulled out of Singapore, but it left behind a lot of question marks and a fair bit of unhappiness – and not just because folks like me can’t get drinks from them anymore. We look at the situation more closely in today’s premium story.
Today we look at:
- Flash Coffee’s exit from Singapore
- The state of startup funding in the Philippines (spoiler alert: it’s not good news)
- Other newsy highlights such as Bain Capital’s biggest fund for Asia to date and OpenAI’s investors exploring potential legal action against its board
Premium summary
The bitter taste of liquidation
Image credit: Timmy Loen
After Flash Coffee exited Singapore in October, many were skeptical of how well its business was doing as a whole. Now that the dust has settled, let’s take a closer look at what’s happened with the firm.
- Still robust(a): Flash Coffee is “nearing EBITDA breakeven in the coming months” in a number of its markets, according to a company spokesperson. The firm also said earlier this year that all 93 of its stores in Indonesia were profitable.
- Hot tea: That said, the company admitted that its Singapore stores were struggling, which led to its exit from the market. A big sticking point with the shutdown, which happened via a voluntary liquidation, is wages – the firm owes over US$224,000 worth of salaries and contractual benefits.
- To go: One may ask: If the company is doing well financially, why can’t it pay salaries for its employees in Singapore? One reason is the complex payment decisions that the liquidation process entails. In any case, Flash Coffee is confident that liquidation proceeds will sufficiently cover its obligations.
Read more: Flash Coffee defends Singapore exit, says regional biz in good shape
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Down, down, in an earlier round
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