Ever visited a Food Junction outlet? Well, very soon, every stall inside every Food Junction outlet will be selling bread, cakes, pastries and puffs from BreadTalk.
Okay, we’re kidding. BreadTalk is buying over Food Junction, but obviously they aren’t going to turn every outlet into an emporium for their doughy products.
The amount – S$80 million – will be paid in cash. Considering that BreadTalk’s market value is about S$400 million, that buyout amount is quite sizeable.
The decision was reportedly made after BreadTalk considered the financials of Food Junction Management (FJM) and how useful having their network will be to their core business.
FJM currently operates 11 food courts in Singapore:
They also have 3 in Malaysia, with one more set to open next year at The Mall in Johor Bahru.
Maybe you weren’t aware, but BreadTalk owns a number of food brands — Food Republic, Toast Box, Sō Ramen, Thye Moh Chan and The Icing Room.
They also have partnerships with big names like Din Tai Fung and Song Fa Bak Kut Teh, allowing the group to run franchises.
And of course, they have their legion of bread shops — which according to their website, numbers close to 1,000 outlets in 16 countries.
Announcement of the massive purchase comes just 2 weeks after BreadTalk CEO Henry Chu stepped down for personal and health reasons.
BreadTalk’s share price has fallen about 50% since its peak of $1.20 in the middle of 2018. According to their recent financial report, the bakery division made a loss for the first half of 2019. On the other hand, food atrium performance was strong, especially those in Hong Kong and China, reporting a 23.8% increase in pre-tax earnings.
This may be why they are deciding to acquire Food Junction — to bolster their business and perhaps mitigate investors’ fears of the CEO resigning.
Hopefully, this homegrown giant finds its footing again and leap to greater heights.
Featured image adapted from Food Junction and SG SME.
The adorable Tabby loves rubbing up against people but says no to back scratches.
Mr Chee will serve a 3-year term till May 2027.
She also allegedly used expletives on one of the employees.
This is part of LTA's plan to build a direct MRT route from Changi Airport…
She had borrowed money from her brother for bus fare to attend the interview.
She goes to the river every day to find food to eat or sell.