BreadTalk Will Delist Company On 5 Jun After Posting $5.8 Million Loss In 2019

[kobayashiGT]

BreadTalk Will Delist Company On 5 Jun After Posting $5.8 Million Loss In 2019

source: https://mustsharenews.com/breadtalk-delist/

BreadTalk Faces Financial Woes Amidst Decision To Delist Company

BreadTalk is synonymous with freshly baked $1 floss buns & an open concept bakery store with their signature white tongs & trays.

However, the homegrown brand has been facing financial woes of late, posting a $5.8 million net loss in 2019, reports The Straits Times.

Now, the company will be delisting themselves on Friday (5 Jun) after a “compulsory acquisition” by BTG Holding.

This means that BreadTalk will no longer be listed on the Singapore Exchange (SGX), and citizens won’t be able to buy or sell shares from the company.

BreadTalk will be privately owned again

The group first issued a “voluntary conditional cash offer” to buy back shares at a price of $0.77 in Feb 2020.

BreadTalk’s share price has previously oscillated between S$0.50-$1.25, according to DrWealth.

This was followed by the halting of the trading of BreadTalk’s shares on 21 Apr.

Bought back by founders & Thailand hospitality chain

United Overseas Bank made an offer on BTG Holding Company’s behalf to buy back remaining ordinary shares issued, before exercising their right to a compulsory acquisition.

BTG Holding Company was created by BreadTalk’s founder Mr George Quek, his wife Ms Katherine Lee & Thailand’s Minor International as a “special purpose vehicle” to complete this deal, reports Business Times.

Osim, Hyflux & M1 were delisted too

Possible reasons for delisting a company from the stock exchange include:

• Greater freedom to privately execute cost-saving strategies
• No need to publicly disclose as much financial info
• Less accountability required to public shareholders

BreadTalk will join other homegrown companies who’ve delisted from SGX like:

• Eu Yan Sang
• Osim
• Hyflux
• M1

Business woes & salary cuts

Back in March, BreadTalk shared that paycuts of 10-50% were conducted till June for staff in senior & middle management roles.

BreadTalk’s expansion to China was also one of the reasons attributed for a “challenging” business environment, with 4th quarter earnings “dragged down” by the performance of outlets in China & the impact of Covid-19 outbreak.

Food Republic, Food Junction & Toast Box are brands which remain & continue to operate under the domain of BreadTalk.

Hope restructuring goes smoothly

For a company founded in 2000, BreadTalk has achieved much over the short span of 20 years.

From a humble single outlet at Bugis Junction, to hundreds of bakeries & food courts in the region, BreadTalk remains one of Singapore’s success stories.

We hope that the company’s decision to delist from SGX & restructuring measures will go smoothly.

[mersaylee]

no money no bread

no bread no talk 
 

wanted to support this homegrown but their stuff expensive leh...mee robus $5-6, fried dough stick $1.20 at food rep, kopi C $1.80...how to support? Same goes with Yakun...

I can get these at kpt or hc for $3, $0.90 and $1.10 only 

I only patronize their franchised DTF because of Uni$...

[Wt_know]

the $$ made in DTF not even enough to cover Bread-losing-hole?

Edited June 4, 2020 by Wt_know

[mersaylee]

31 minutes ago, Wt_know said:

the $$ made in DTF not even enough to cover Bread-losing-hole?

That one need to share here share there...diluted profits 

[Stratovarius]

28 minutes ago, mersaylee said:

no money no bread

no bread no talk 
 

wanted to support this homegrown but their stuff expensive leh...mee robus $5-6, fried dough stick $1.20 at food rep, kopi C $1.80...how to support? Same goes with Yakun...

I can get these at kpt or hc for $3, $0.90 and $1.10 only 

I only patronize their franchised DTF because of Uni$...

But their quality of kopi/teh is at least more consistent. Going to kpt or coffee shop sometimes is a hit or miss.

I agree on their bread is expensive. I remember before CB the bahu bread is $1.7. Now has risen to $2.2 according to my wife. Also, variety of bread is limited comparing to those bakery in TW or JP.

[Hamburger]

Inconsistent quality. 

[Jellandross]

I support their kopi when I'm not near any familiar kopi diams. Most kopi diams kopi are crappy. At least toastbox mostly consistent. 

[Count-Bracula]

Bread Cannot Talk. 

[Windwaver]

Both me and my wife find that their stuff really expensive.

During sale, $10 for 10 bread also expensive, I'll never queue for it but a lot of people do.

My home baked bread much better 

 

[inlinesix]

Breadtalk has this sunflower seed bun. It cost about $2/pc.

I saw this bun in Shanghai. The price is the same as Singapore 

[13177]

15 minutes ago, Windwaver said:

Both me and my wife find that their stuff really expensive.

During sale, $10 for 10 bread also expensive, I'll never queue for it but a lot of people do.

My home baked bread much better 

 

Nowdays many bakery bread is expensive. Unless you are buying from those old school bakery, maybe still can find around $1 bread.

[Brass]

8 minutes ago, 13177 said:

Nowdays many bakery bread is expensive. Unless you are buying from those old school bakery, maybe still can find around $1 bread.

And $1 bread sometimes also not nice. (Or some very small)

At least BT is decent.

[Lala81]

1 hour ago, Wt_know said:

the $$ made in DTF not even enough to cover Bread-losing-hole?

Song fa also doing well. 

[Freeder]

BT buns too ex liao..

really crazy prices.

They think their buns haute couture grade..

Baker Talent cheap n good especially the golden sand buns..

Edited June 4, 2020 by Freeder

[Blueray]

2 hours ago, mersaylee said:

no money no bread

no bread no talk 
 

wanted to support this homegrown but their stuff expensive leh...mee robus $5-6, fried dough stick $1.20 at food rep, kopi C $1.80...how to support? Same goes with Yakun...

I can get these at kpt or hc for $3, $0.90 and $1.10 only 

I only patronize their franchised DTF because of Uni$...

tried their curry chicken rice once ... wah piang ... 

should have eaten economic rice that day. 

[Jusnel]

i frequent them last time. almost every weekend but always find them too expensive. 

flour is damm cheap. even with all the ingredients, the total cost is v cheap.  I do home baked so i know all the costs.

their cooked food also too ex.  Mee siam is about $7+ with coffee?!  seriously?!  i go to any stall, it's only $2.50 to $3 and its more freshly cooked.

Those in Breadtalk, the noodles are pre packed.  The staff will just put in microwave, heat up, and put sauce and condiments on it.  And it cost $7?  Same goes for their fried noodles, etc. All pre packed and microwave.

They should not have done this way.  Customers can see since they do it all at front counter.  No one is going to pay that much for microwave heating. 

The ONLY good stuff is their coffee.  They are really v good.  Even better than Ya Kun.  it's thick and strong. 

Maybe Breadtalk shld go back to their drawing board and re-look at their fundamentals and core strength.

[Wt_know]

22 minutes ago, Jusnel said:

i frequent them last time. almost every weekend but always find them too expensive. 

flour is damm cheap. even with all the ingredients, the total cost is v cheap.  I do home baked so i know all the costs.

their cooked food also too ex.  Mee siam is about $7+ with coffee?!  seriously?!  i go to any stall, it's only $2.50 to $3 and its more freshly cooked.

Those in Breadtalk, the noodles are pre packed.  The staff will just put in microwave, heat up, and put sauce and condiments on it.  And it cost $7?  Same goes for their fried noodles, etc. All pre packed and microwave.

They should not have done this way.  Customers can see since they do it all at front counter.  No one is going to pay that much for microwave heating. 

The ONLY good stuff is their coffee.  They are really v good.  Even better than Ya Kun.  it's thick and strong. 

Maybe Breadtalk shld go back to their drawing board and re-look at their fundamentals and core strength.

to be honest bread profit margin is thin

the material cost especially flour, sugar, etc also keep rising

not to mention rental especially breaktalk like to have outlets in popular shopping mall and high traffic mrt station like city hall.

operating cost will negate all the profit margin ... lastly, stiff competition and alternatives

toastbox operating cost is also high ... cannot compare with hawker and foodcourt mee rebus and curry chicken

Edited June 4, 2020 by Wt_know

[Lala81]

I'm not saying that BT is cheap. And some of their breads can definitely be expensive.
I dont drink coffee so not sure of toastbox quality. I've only drank like their non kopi choices which is ok.

U all guys go rent a prime 1st storey space outlet and let people sit inside for a 2 dollar hot drink lor. U just go count how many drinks u need to break even.