Thai eatery chain owner disappears, leaving supplier with over S$160,000 in unpaid debt

A frozen food supplier in Singapore has been left with over S$160,000 in unpaid invoices after a long-time restaurant client suddenly ceased payments, transferred business ownership, and became uncontactable.

The supplier, Ocean Harvest Frozen Food Ltd (海盛食品公司), had worked with SOI 47 TWO Pte Ltd, a Thai and bak kut teh restaurant group, since 2019. Its director, He Zhenzhu, 43, described the business relationship as smooth until late 2024.

“Orders were always placed by the company’s manager, Mr Hong (surname transliterated), and payments were settled monthly,” Mr He told Shin Min Daily News.

However, in September 2024, payments began to stall. Mr He said excuses were offered — including claims of the manager being abroad or cheque books being unavailable.

In December, Mr Hong admitted the company was in financial trouble and requested to repay the debt via instalments.

“I agreed to monthly payments of S$20,000 to S$30,000 because of our years of working together,” Mr He said.

Payments stopped; ownership transferred

Instalments continued until August 2025, when payments stopped completely and Mr Hong became unreachable. Mr He later discovered that Mr Hong had been imprisoned in June for violating labour regulations.

More troubling was the fact that the remaining restaurants had been sold. Mr He contacted the registered company director, who stated that he was merely a nominee and not involved in operations. He added that the business was now defunct, with ten restaurants closed and the remaining three transferred to new owners.

“I feel angry and helpless,” said Mr He. “There’s no one to hold accountable, and I do not intend to work with the new owners.”

The total amount owed stems from six months of unpaid deliveries, totalling more than S$160,000. Mr He has since lodged a police report, confirmed by Singapore police in response to media queries.

Broader crisis among F&B suppliers

Mr He’s case reflects a wider pattern of distress in Singapore’s food and beverage (F&B) sector.

According to Channel News Asia, more companies were liquidated in the first half of 2025 than during any similar period in the last five years, with 187 court-mandated wind-ups between January and June alone.

The F&B industry has been the hardest hit, according to licensed debt collectors and asset recovery firms interviewed by CNA.

One firm, JMS Rogers, reported an example of a food supplier who was owed S$2.5 million by 120 clients, severely damaging their cash flow.

“Debts can range from a few hundred to hundreds of thousands,” said Leroy Frank Ratnam, CEO of JMS Rogers. “The F&B sector is suffering the most.”

Another firm, Assured Debt Recovery, said it had seen a 30 percent increase in F&B clients closing down with outstanding debts compared to the year before. Many suppliers are now pulling back on credit, fearing they will not recover payments.

Suppliers paying upfront, waiting months for payment

Among those affected is Dessert Guru, a supplier of fruit purées and bubble tea toppings. Co-owner Ken Tan told CNA that customers who once paid within 30 days were now delaying payment up to 120 days.

“We are paying upfront to our suppliers, but we only get paid back in three to four months. It’s painful,” Tan said.

The strain has intensified as more than 3,000 F&B outlets closed in 2024 — the highest in nearly 20 years. This includes major names such as Eggslut, Burger & Lobster, and multiple Haidilao branches, along with fine-dining venues like Euphoria Restaurant and Alma by Juan Amador.

Suppliers like Huber’s Butchery are now enforcing stricter credit terms. Executive director Andre Huber said he once lost S$70,000 from clients who disappeared without paying.

“They’ll promise to pay face to face, then vanish. Some even migrate overseas,” he said.

Sector outlook remains fragile

The Monetary Authority of Singapore noted in its July 2025 Macroeconomic Review that the F&B and retail sectors both recorded full-year contractions in 2024, and continued to underperform in early 2025.

Structural pressures such as high operational costs, market saturation, and shifting consumer preferences have contributed to these sectors’ ongoing challenges.

Mr He said he has now introduced internal safeguards: Ocean Harvest will suspend supply to any client whose debt exceeds S$120,000.

“This was an expensive lesson. I’ll be more cautious moving forward,” he said. “I hope my peers will also be vigilant — don’t extend credit too easily.”