Starting from 10 February 2022 effectively, MOM’S TOUCH, a Korean fast-food chain that specialises in fried chicken and burgers, has announced the permanent closure of its outlets at Paya Lebar Quarter, Bedok’s Eastwood Centre and Orchard’s The Centrepoint.
Reasons for Its Permanent Closure
Mom’s Touch had operated under No Signboard’s subsidiary Hawker QSR, which also had a string of currently defunct hawker-inspired fast-food eateries.
All in all, business seems to have plummeted for No Signboard and Hawker QSR, since The Business Times reported that Hawker QSR has filed for a wind-up petition and voluntary liquidation of its assets, as it can no longer sustain daily operations because of its liabilities.
The liabilities include owing rent that amounts up to $176,000 for each unit occupied to two landlords.
The landlords in question are from The Centrepoint Singapore, Frasers Property Centrepoint, who have sent a letter of demand for a total unpaid sum of $12,161.10.
Another letter of demand came from lawyers of Milano Central, the landlord of Paya Lebar Quarter, demanding a sum of $163,965.56.
For both places in question, Mom’s Touch, and by extension Hawker QSR, occupies a unit in the mentioned malls.
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Poor Trading of Shares for the Parent Company
Besides the financial woes of owing rent, its parent company No Signboard has requested for a trading halt of its shares on 19 Jan, after its shares were last traded at $0.031 on 17 Jan.
That’s an incredibly low price.
This was because the parent company, and the local food and beverage industry in general, were failing to make profits due to the dining restrictions caused by the pandemic.
If they continued trading shares, the company would be going against the Catalist rules set by the Singapore Exchange Securities Trading (SGX-ST).
Just a month prior to the halt in trade sharing, No Signboard had attempted to pull in Henry Chandra Tjiang, an Indonesian private investor in an attempt to salvage the financial situation, but that deal had fallen through.
Had it been successful, Mr Tjiang would have invested $3.5 million.
The reason it failed was because No Signboard was supposed to use approximately 77.8 million new shares to sell them at 4.5 cents each to Tjiang, but No Signboard couldn’t keep their end of the deal as the shares fell significantly below the agreed price.
Against the mounting debt, No Signboard had no choice but to also declare itself insolvent and liquidate its company.
Abrupt Closure?
Below the Facebook Post, some netizens have voiced their surprise towards the sudden closure.
On Burpple, most of Mom’s Touch’s reviews had been broadly positive too.
However, considering the news of financial troubles and poor investments amidst the pandemic conditions that have been inconspicuously popping up, perhaps the closure of Mom’s Touch had been slow in coming but inevitable in the end.
In difficult times like these, we can only bade the franchise goodbye.
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