Tipsy Collective staff go unpaid amid tussle between co-founder and shareholders

More than 100 employees of home-grown hospitality group Tipsy Collective were not paid their October salaries in what is a sign of the firm's worsening financial mismanagement amid an ongoing legal battle between its co-founder and shareholders.

- Joyce Lim

The company issued an internal memo to staff on Nov 6, a day after staff were supposed to be paid, attributing the delay to "a temporary adjustment in financial scheduling".

In the note, Tipsy Collective group human resource manager Avril Lim assured employees that steps are under way to resolve the payment issue and they can expect to get paid "over the next few days".

Founded in 2019, Tipsy Collective runs 10 restaurants and bars here and one in Kuala Lumpur. The company has been embroiled in a legal battle since August.

The Straits Times reported in September that Tipsy's co-founder David Gan was suing eight parties, which include shareholders and investors, for breaching a shareholders' agreement and attempting to seize control of the company.

Pending the outcome of the suit, he had tried to get an interim injunction to maintain control of the company's board. On Oct 15, the High Court dismissed his application, which allowed the majority shareholders to elect new directors to Tipsy's board.

On Nov 6, the company's board terminated the role of Mr Gan as chief executive. He still remains as one of the three directors in the company. The company's corporate secretary was also fired, said a representative of the new management.