[Update on 21 January 2020]
Homegrown family-friendly karaoke studio Teo Heng KTV was based again in 1989 by Jackson Teo, who began out promoting karaoke sound programs at Katong Purchasing Centre.
In July final 12 months, Teo Heng KTV introduced that it will likely be closing down half of its 14 shops in Singapore as a result of COVID-19.
Nonetheless, when Vulcan Publish spoke to Teo Heng KTV final October, it stated that it has reinstated and returned solely two shops — Katong and Sembawang — in August 2020.
Teo Heng KTV initially introduced as we speak (Jan 21) that it will likely be “leaving the business for good” after over 30 years of operation, however later stated that the exit is barely a “non permanent transfer”.
It shared on its Instagram put up that “Teo Heng Buying and selling will nonetheless be in operation” and can proceed persevering for now.
They’re attempting to remain robust and maintain on to 2 of their shops at Ci Yuan Group Membership and Tampines West Group Membership since their leases are far more inexpensive.
They’re additionally hoping that the Folks’s Affiliation may also help them out on the rental entrance.
S$1.5M Reserves Drained
Teo Heng KTV has been struggling to outlive because the authorities launched the advisory in March final 12 months for karaoke shops 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.
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 lowered 50 per cent from final October onwards.
In line with Jean, their employees have been very understanding about their monetary state of affairs.
In truth, it was their workers who instructed this pay minimize. They perceive that it’s a tough time for Teo Heng KTV and wished to assist alleviate their burden.
Fortunately, they have been nonetheless raking in some cash from their core enterprise of promoting sound programs, however gross sales have sadly dipped “at the very least 50 per cent” because of the pandemic.
With COVID-19, Teo Heng KTV has needed to step up their cleansing and sanitisation efforts too.
To date, they’ve spent greater than S$100,000 to put in anti-virus fogging machines at each outlet. Each month, in addition they spend at the very least S$6,500 to maintain the rooms clear and disinfected.
“As a result of we’re not incomes cash now, however nonetheless must hold spending, it’s a bit tough,” Jackson stated in a video interview with CNA Insider.
Jean had additionally beforehand 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 now we have to shut every part.
– Jean Teo, director of Teo Heng KTV
Misplaced Their Likelihood To Pivot
Beforehand, Jackson informed Shin Min Every day Information that he plans to lift S$1 million and put up a final battle to beat this disaster. With the remaining shops, he hopes to recoup the losses once they reopen.
The plan by no means bore fruition as karaoke shops nonetheless stay largely closed.
Happily, the authorities introduced plans to roll out restricted pilot programmes to assist the nightlife business reopen safely.
Nonetheless, Teo Heng KTV determined to not apply for the reopening because the excessive prices concerned — comparable to conducting swab exams for each buyer — will additional take a toll on their enterprise.
Due to this fact, it deliberate to show six of its remaining 12 shops into working and learning areas outfitted with free Wi-Fi.
The plans have now come to naught because the reopening pilot programme has been placed on maintain as a result of rising COVID-19 group circumstances.
This implies they’ll now not proceed their plans to reopen. With out drawing any earnings, they can’t afford to repay their rents.
Whereas they’ve “good landlords” who’re variety sufficient to not accumulate lease from them in the interim, she is conscious that it’s unfair for them to proceed ready.
Teo Heng KTV presently owes landlord rental from August 2020 to February 2021, however is now holding negotiation talks with them to hopefully come to an answer the place each is not going to lose out.
Jean assured that “it’s a matter of time” earlier than they make a comeback and can attempt to minimize down on their losses within the meantime.
Featured Picture Credit score: Teo Heng KTV