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.