Hooters Asia puts on bold front in rent tussle
In this article (5)
Despite facing eviction from its Lan Kwai Fong location for failing to pay rent, Hooters Asia still plans expansion in Hong Kong.
Legal documents filed with the High Court on Friday on behalf of the landlord, Dor Fook Company, say the US restaurant/bar has failed to pay more than HK$1.13 million (US$145,000) in rent since April despite “repeated demands and requests”.
Meanwhile, Hooters Asia says it still plans four more venues for Hong Kong, despite its sole outlet breaking even for the first time last month.
Hooters signed a 10-year lease for the Wyndham Street venue in April last year, agreeing to pay $330,000 a month for the first year.
Hooters Asia president Daniel Yong, who took over management two months ago, says he is surprised by the legal action as he has already discussed repayment with the landlord. The former manager resigned this year, leaving a “messy accounting system” and unpaid bills, says Yong.
Questions & Answers
Q.What is the total amount of unpaid rent Hooters Asia owes for its Lan Kwai Fong venue?
What is the total amount of unpaid rent Hooters Asia owes for its Lan Kwai Fong venue?
Legal documents state Hooters Asia has failed to pay over HK$1.13 million (US$145,000) in rent. This amount has accumulated since April, despite the landlord's repeated demands for payment.
Q.When did Hooters Asia sign the lease for its Wyndham Street location and what was the initial monthly rent?
When did Hooters Asia sign the lease for its Wyndham Street location and what was the initial monthly rent?
Hooters signed a 10-year lease for the Wyndham Street venue in April last year. They agreed to pay $330,000 a month for the first year of the agreement.
Q.How does Hooters Asia's new president explain the unpaid rent and legal action?
How does Hooters Asia's new president explain the unpaid rent and legal action?
Daniel Yong, the new president, attributes the issues to a "messy accounting system" and unpaid bills left by the former manager who resigned this year. He is surprised by the legal action as he had already discussed repayment.
Q.Despite the current financial difficulties, what are Hooters Asia's plans for expansion in Hong Kong?
Despite the current financial difficulties, what are Hooters Asia's plans for expansion in Hong Kong?
Hooters Asia still intends to open four more venues in Hong Kong. This expansion plan remains in place even though its sole existing outlet only recently broke even for the first time.
Reader pulse
Hooters' expansion plan:
22,249 votes so far