Teo Heng KTV Closes For Good In S’pore After Over 30 Years
In July of last year, Teo Heng KTV announced that it would close half of its 14 outlets in Singapore due to COVID-19.
However, when Vulcan Post spoke with Teo Heng KTV last October, he said that he only restored and returned two outlets – Katong and Sembawang – in August 2020.
Today it has finally ceased operations and will close all other outlets after more than 30 years of operation. It was founded in 1989 by Jackson Teo, who started selling karaoke sound systems at Katong Mall.
Teo Heng KTV has struggled to survive since the government issued the notice in March last year for the closure of karaoke and other entertainment venues under COVID-19 security measures.
Jackson had previously shared with Lianhe Wanbao that he expected to suffer losses of $ 500,000 for a one-month shutdown. To date, Teo Heng KTV has been closed for 10 months.
Reserves of $ 1.5 million drained
In our previous interview with Teo Heng KTV director Jean Teo, she cited rental as their “biggest headache”.
In addition, during the period of closure of the company, the 120 employees of Teo Heng KTV were forcibly laid off.
They all received their full pay during the first six months of the shutdown, but their pay has since been slashed by 50% as of last October.
According to Jean, their workers have been very understanding of their financial situation.
In fact, it was their employees who suggested this pay cut. They understand that it is a difficult time for Teo Heng KTV and wanted to help ease their burden.
Fortunately, they were still making some money from their main business of selling public address systems, but sales unfortunately fell “by at least 50%” due to the pandemic.
At the time, Jean also said they had around $ 1.5 million in reserves to keep them afloat.
If COVID-19 drags on, I don’t know if we can survive for a few more months. Once our reserves are empty, it really means that we have to shut everything down.
– Jean Teo, director of Teo Heng KTV
The chance to pivot failed
Earlier, Jackson told the Shin Min Daily News that he plans to raise S $ 1million and fight to overcome this crisis. With the other points of sale, he hopes to recover the losses when they reopen.
The plan never came to fruition as the karaoke bars are still largely closed.
Fortunately, authorities have announced plans to roll out limited pilot programs to help the nightlife industry reopen safely.
However, Teo Heng KTV has decided not to request the reopening because the high costs involved – such as performing swab tests for each client – will weigh more heavily on their business.
It therefore plans to transform its existing points of sale into work and study spaces equipped with free Wi-Fi.
Plans have now failed as pilot reopening programs have been put on hold due to the increase in COVID-19 cases in the community.
This means that they can no longer pursue their plans to reopen. Without earning any income, they cannot afford to pay their rent.
Although they have “good landlords” who are kind enough not to collect rent from them at the moment, she realizes that it is unfair to landlords, so she made the painful decision for Teo Heng. KTV to shut down permanently.
For now, Teo Heng KTV must pay the unpaid rents from August 2020 to February 2021 to the owners, or face legal action.
Featured Image Credit: Teo Heng KTV
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