In July final yr, Teo Heng KTV introduced that will probably be closing down half of its 14 retailers in Singapore resulting from COVID-19.
Nevertheless, when Vulcan Publish spoke to Teo Heng KTV final October, it mentioned that it has reinstated and returned solely two retailers — Katong and Sembawang — in August 2020.
At present, it has lastly referred to as it quits and might be closing all remaining retailers after over 30 years of operation. It was based in 1989 by Jackson Teo, who began out promoting karaoke sound methods at Katong Procuring Centre.
Teo Heng KTV has been struggling to outlive because the authorities launched the advisory in March final yr for karaoke retailers and different leisure venues to shut as a part of COVID-19 security measures.
Jackson beforehand shared with Lianhe Wanbao that it anticipated to incur losses of $500,000 for a month-long closure. So far, Teo Heng KTV has been closed for 10 months.
S$1.5M Reserves Drained
In our earlier interview with Teo Heng KTV’s director Jean Teo, she cited rental as their “greatest headache”.
Furthermore, throughout their interval of enterprise closure, Teo Heng KTV’s 120-strong workers have been forcibly put out of labor.
They have been all paid full salaries for the primary six months of closure, however their pay has since been decreased 50 per cent from final October onwards.
In response to Jean, their staff have been very understanding about their monetary state of affairs.
Actually, it was their workers who prompt this pay lower. They perceive that it’s a troublesome time for Teo Heng KTV and needed to assist alleviate their burden.
Fortunately, they have been nonetheless raking in some cash from their core enterprise of promoting sound methods, however gross sales have sadly dipped “at the least 50 per cent” as a result of pandemic.
Again then, Jean additionally shared that that they had about S$1.5 million in reserves to maintain them afloat.
If COVID-19 drags on, I don’t know if we are able to survive for an additional few months. As soon as our reserves are empty, it actually signifies that we have now to shut the whole lot.
– Jean Teo, director of Teo Heng KTV
Misplaced Their Probability To Pivot
Beforehand, Jackson advised Shin Min Every day Information that he plans to lift S$1 million and put up a final combat to beat this disaster. With the remaining retailers, he hopes to recoup the losses once they reopen.
The plan by no means bore fruition as karaoke retailers nonetheless stay largely closed.
Happily, the authorities introduced plans to roll out restricted pilot programmes to assist the nightlife business reopen safely.
Nevertheless, Teo Heng KTV determined to not apply for the reopening because the excessive prices concerned — similar to conducting swab exams for each buyer — will additional take a toll on their enterprise.
Subsequently, it deliberate to show its present retailers into working and learning areas outfitted with free Wi-Fi.
The plans have now come to naught because the reopening pilot programmes have been placed on maintain resulting from rising COVID-19 neighborhood instances.
This implies they will now not proceed their plans to reopen. With out drawing any revenue, they can not afford to repay their rents.
Whereas they’ve “good landlords” who’re sort sufficient to not acquire hire from them in the meanwhile, she is conscious that it’s unfair for them so she has made the painful resolution for Teo Heng KTV to shut for good.
For now, Teo Heng KTV has to settle excellent rental cost from August 2020 to February 2021 to the landlords, or threat being sued.
Featured Picture Credit score: Teo Heng KTV