Comedian Allan K has decided to shut the down the two comedy bars that he had established for years due to “a tremendous economic financial loss” caused by the ongoing pandemic.
In a letter sent to Pep.ph, the comedian and Lito Alejandria, general manager for Zirkoh and Klownz, announced that the closure will be effective on July 29.
“We regret to inform you that our company, Klownz Comedy Bar Inc., is facing a tremendous economic financial loss brought about by the coronavirus 19 pandemic in the Philippines,” read the letter.
“And because of this unprecedented uncertainty, our overhead expenses cannot be met, that is the reason that the company resorted to closure effective July 29, 2020,” it added.
The company indicated that the statutory separation pay cannot be given among its employees as the two bars are “now in the verge of bankruptcy”.
“As much as we want to give you the statutory separation pay as provided by the law, the company can no longer afford the same as we are now in the verge of bankruptcy and we do not have enough funds to pay the same,” it said.
The employees, however, were assured that they will be given their unpaid salary, 13th month pay, as well as additional cash assistance.
More than 100 employees will be affected by the closure of Klownz and Zirkoh, which have operated for 18 and 16 years, respectively.
The Department of Labor and Employment said on June 2020 that some 2,068 establishments had ceased operations due to the ill economic effects of COVID-19, displacing nearly 70,000 workers.
