The board of Kitchen Culture has made a slew of moves in a bid to “usher in a new era of transparency, accountability and business expertise”.
On July 24, the company announced that it has appointed five new directors who will “move the company forward”. The company will also address and resolve its legacy issues including negotiating with its creditors to resolve all “long overdue liabilities”. The announcement came shortly after a special audit report found that the company had potentially breached listing rules.
Some, such as the letter of demand (LOD) from CDL Properties in relation to Kitchen Culture’s alleged default of the lease agreement between itself and CDL Properties, have been resolved.
The LOD was sent on March 14 and the company was subsequently evicted from its premises on March 16.
The issues were resolved when Kitchen Culture reached a settlement with CDL on July 21 to fully settle rental arrears and reinstate its office in Republic Plaza.
Other issues such as the LOD from Tan Gin Tat with regard to the $1.5 million loan extended to Kitchen Culture in 2022 will be resolved “in due course” with the board currently seeking legal advice on the matter.
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On the special audit in relation to the company’s payroll irregularities and unauthorised transaction, the board says it will engage professionals to address the issues and recommendations raised.
“In relation to the appointment of a new external auditor, the board has identified a suitable external auditor and will be seeking shareholders’ approval for the appointment in due course,” says Kitchen Culture in its statement.
Finally, the company is looking to raise funds and evaluate “sustainable business opportunities” moving forward. “As part of these efforts, the company will be releasing a detailed business update as soon as practicable.”
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"We understand that the company has faced significant challenges in the past, and we are committed to addressing these issues and moving forward," says Hao Dongting, non-executive chairperson.
"We are confident that with the right strategies and execution, Kitchen Culture will be able to create sustainable growth and long-term shareholder value. Meanwhile, the board will be conducting a thorough review of the company's operational and financial procedures and implement policies and procedures that ensure the company is run in a transparent, responsible and efficient manner,” she adds.
Shares in Kitchen Culture last traded at 8 cents before its trading suspension since July 2021.
