Cake Shop closure after unpaid debts
A popular bakery business has closed after the company that operated it was wound up.
Cake Shop Limited, which operated an outlet on Curving Avenue in Pembroke, was back before the Supreme Court of Bermuda Friday morning on a winding-up petition brought by former employees Chittababu Narayanasamy, Janaarthanan Jawar, Udayakumar Santhananam, and Mahipal Singh.
The petition was launched under section 162 of the Companies Act on the basis that the company is unable to pay its debts, as and when they fall due.
Former staff members were initially owed a total of $58,114.93.
At a hearing in January, Cake Shop was granted additional time to pay.
Partial payment was made before the matter came before the court again in February.
At that hearing Chief Justice Narinder Hargun granted Cake Shop “one last chance” to make payment failing which he said the company would be wound up -- and the matter was adjourned.
Lawyer Craig Rothwell, representing the petitioners, told the court via Zoom on Friday that no payments had been made to his clients since the previous hearing.
He said the amount outstanding was $37,550.16.
Mr Rothwell sought an order that the company be wound up, and that Rachel Frisby and Edward Willmott be appointed joint provisional liquidators.
Lawyer Paul Harshaw supported the order being sought.
He told the court that his clients, Alexander Management and James Watlington, were owed $10,000 and approximately $2,200, respectively, by the company.
Lawyer Marc Daniels, representing Cake Shop, confirmed to the court that his client was unable to make the payments.
Mr Daniels said he would not apply for an extension of time to pay, and would make no further argument regarding the order being sought.
Mr Justice Hargun ordered that the company be wound up, and ordered that Ms Frisby and Mr Willmott be appointed as joint provisional liquidators.
He further ordered that the petitioners’ costs be paid out of the assets of the company in priority to other claims.
Cake Shop took to social media after the hearing, writing: “It is with heavy hearts that we inform the community The Cake Shop Ltd will be going out of business immediately.
“We have worked hard to keep our doors open but sadly we have been unable to continue to stay afloat.
“We thank each and every member of our community who has supported The Cake Shop Ltd for many generations.”