2 days ago
Japanese ramen chain Kanada-Ya shuts all three Singapore outlets amid losses
Kanada-Ya's Marina Square outlet, which has not been in operation since June 8. ST PHOTO: MEGAN WEE
SINGAPORE – Japanese ramen chain Kanada-Ya has stopped all its operations in Singapore after its parent company Aspen Group said it is winding up the business due to continued losses.
Mainboard-listed Aspen Group said in a bourse filing on June 11 that it will place Kanada-Ya SG and its wholly-owned direct subsidiary Kanada-Ya Restaurants under creditors' voluntary liquidation, as the subsidiaries are no longer able to pay their debts.
It said: 'The challenging conditions of Singapore's food and beverage sector, including elevated operating costs and soft consumer spending patterns, have negatively impacted the subsidiaries' business in this segment, resulting in continued operational losses.'
Aspen also noted that after the death of the founder and executive director of the Kanada-Ya brand's franchiser , its Singapore units saw a sharp drop in marketing and operational support from the franchiser .
'In light of these cumulative challenges, the subsidiaries' operations are no longer sustainable and as of the date of this announcement, the subsidiaries have ceased operations at all their outlets,' it added.
Kanada-Ya, which originated in the city of Yukuhashi in Fukuoka , Japan, operated three outlets in Singapore – at Paya Lebar Quarter (PLQ), Marina Square and Jem. Its first outlet here opened at Paya Lebar Quarter in 2019. Some of its signature items included its black garlic ramen and truffle-infused ramen.
Jem mall staff told The Straits Times on June 12 that the outlet there closed its doors on June 6.
At PLQ, the shop lot where Kanada-Ya used to operate was also boarded up. At i ts Marina Square outlet, an employee from a neighbouring shop, soup eatery Lao Huo Tang, told ST that the Kanada-Ya outlet had not been in operation since June 8.
Aspen said the closures are expected to have a positive impact on its net assets and earnings for the financial year ending June 30, 2025.
'The creditors' voluntary liquidation will also enable Aspen to streamline its operations and focus its resources on its core business segment of property development,' it said.
Kanada-Ya's closure comes amid similar struggles in Singapore's food and beverage sector.
Fellow Japanese restaurant operator Japan Foods reported a net loss of $6.2 million for the six months ended March 31, deepening from a $576,000 loss a year earlier.
This comes as Japan Foods's revenue for the half slid 7.5 per cent year on year to $40.2 million, from $43.4 million.
It attributed this to 'tough market conditions', as existing brands, including Yakiniku Shokudo, Menya Musashi and Konjiki Hototogisu, generated lower revenue. Konjiki Hototogisu also closed three outlets – at Chijmes, Paragon and Jewel.
Additional reporting by Megan Wee
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