Ministry Of Food Founder Declared Bankrupt After Accumulating Over S$5.4M In Debt

Ministry Of Food Founder Lena Sim Declared Bankrupt

Many F&B businesses took a huge hit during the pandemic, with few coming out of the difficult period in good shape.

The founder of Ministry of Food (MOF) found that out the hard way as she was declared bankrupt recently.

Having once owned over 80 restaurants around Singapore, Lena Sim has now accrued over S$5.4 million in debt.

She had even acted as a personal guarantor for a S$7 million (USD$5 million) loan to a company owned by her partner, Ting Choon Meng.

Ministry of Food founder bankrupt after shutting last outlet in 2021

According to The Straits Times (ST),  the bankruptcy order against Ms Sim came after the court ordered her to shut down MOF over owed debts in 2021.

After opening the first outlet at Marina Square in 2006, MOF had about 80 restaurants at its peak.

These included the likes of MOF, Hanssik, DaeSsikSin, Lenas, Ju Hao, Dolve Tokyo and Insadong Korea Town.

In 2017, Ms Sim was sued by a Korean restaurant chain over outstanding payments of S$4.8 million.

ST reports that Ms Sim had agreed to buy the chain for S$5.5 million but only paid S$700,00 of that amount.

Unsuccessfully tried to stave off bankruptcy

Since then, Star Sino Developments, creditors of MOF, had issued four statutory demands to Ms Sim from 2017 to 2021.

During this four-year period, Ms Sim acknowledged the debt and entered into several repayment agreements with the creditors.

However, she allegedly defaulted on her payment in 2021, resulting in the fourth statutory demand. Star Sino also commenced a second bankruptcy application against Ms Sim in 2021.

To stave off bankruptcy, Ms Sim applied to set aside the latest statutory demand in court.

According to ST, Ms Sim stated in her application that she was not indebted to Star Sino at all, and that the creditor had tried to avoid the provisions of the Moneylenders Act by disbursing the money into her bank account.

This was duly dismissed by the Supreme Court, along with her appeal later on.

She also faces charges from the Inland Revenue Authority of Singapore for failing to provide information on two companies.