The founder of Ministry of Food (MOF), Lena Sim, who once owned more than 80 restaurants around Singapore, has declared bankrupt after accruing more than $5.4 million in debt.
The bankruptcy order against her came in the wake of her being ordered by the court to shut down Ministry of FOod over debts that were owed in 2021, according to Straits Times.
At the height of its success, MOF has more than 80 restaurants in Singapore, after its first outlet opened in 2006 at Marina Square.
Sim was sued in 2017 by a Korean restaurant chain for outstanding payments of $4.8 million that was not paid.
She had reportedly agreed to buy the restaurant chain for $5.5 million, but only paid them $700,000,
Ever since, MOF’s creditors, Star Sino Developments, issued 4 statutory demands to Sim from 2017 to 2021, during which Sim acknowledged the debt and entered into repayment agreements with the creditors.
But Sim then allegedly defaulted on her payment in 2021, after which Star Sino then began bankruptcy proceedings against her last year.
In an attempt to stave off the bankruptcy, Sim applied in court to set aside the fourth and latest statutory demand, stating in her application that she was not indebted to Star Sino.
She also said in her application that they had tried to avoid the provisions of the Moneylenders Act by disbursing the money into her bank account.
Her application was ultimately dismissed by the High Court, along with her subsequent appeal – she is also facing charges from IRAS for not providing information on 2 companies.
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