Tom n Toms Hong Kong closing all stores
In this article (5)
Tom n Toms Hong Kong has shuttered all five of its stores after the South Korean coffee chain’s local franchise went into liquidation.
Following news of its Myanmar expansion plans, the popular South Korean cafe eventually could not withstand the pressures on Hong Kong’s depressed retail market.
Tom n Toms Hong Kong launched in 2016 and had outlets at Tuen Muen Town Plaza, Tsim Tsa Tsui’s The One, Causeway Bay’s Time Square, Nam Cheong’s V Walk and Tsuen Wan’s Citywalk shopping malls. The Nam Cheong’s V Walk branch had opened only in August last year.
The Tuen Muen branch was the first to close, a notice posted on its door announcing its liquidation.
After taking into consideration a debt if HKD10 million (US$1.3 million) debt and its current financial situation, the Tom n Tom Hong Kong board admitted the business was inoperable. A search for buyers had proven fruitless, so all proceeds from the sale of assets will be distributed to creditors.
The company will hold a creditors meeting at the end of this month. Most affected employees have been paid off and advised to approach the Labour Department to claim the remaining payments in lieu of notice and holidays.
Questions & Answers
Q.What is the primary reason given for Tom n Toms Hong Kong closing all its stores?
What is the primary reason given for Tom n Toms Hong Kong closing all its stores?
The South Korean coffee chain's local franchise went into liquidation. The company could not withstand the pressures on Hong Kong’s depressed retail market and its board admitted the business was inoperable due to its financial situation.
Q.How much debt did Tom n Toms Hong Kong have when it ceased operations?
How much debt did Tom n Toms Hong Kong have when it ceased operations?
The Tom n Toms Hong Kong board took into consideration a debt of HKD10 million (US$1.3 million). This significant debt contributed to the decision to admit the business was inoperable.
Q.What will happen to the company's assets and outstanding payments to creditors?
What will happen to the company's assets and outstanding payments to creditors?
A search for buyers proved fruitless, so all proceeds from the sale of assets will be distributed to creditors. The company will also hold a creditors meeting at the end of this month.
Q.Were all employees paid everything they were owed when the stores closed?
Were all employees paid everything they were owed when the stores closed?
Most affected employees have been paid off. However, they were advised to approach the Labour Department to claim any remaining payments due to them in lieu of notice and holidays.
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