Because of about HKD100 million debt and other financial problems, Tai Lin Radio Service, the Hong Kong-based 62 years' old appliances store announced its bankruptcy on October 17, 2008 and sales from its 13 stores have been suspended.
Lin Zuoli, chairman of Tai Lin, told local media that many problems, including high store rents, the global financial crisis and declining purchasing power caused troubles to the company's small profits but quick returns strategy. He said he had invested heavily to save the company — but his efforts proved to be useless. Therefore, they had to hand over the company to the liquidator.
Liao Yaoqiang, managing director of Ernst & Young, the accounting firm that is temporarily responsible for the liquidation of Tai Lin, said that Tai Lin was already had HKD100 million debts in August 2008. After it failed to find a buyer, the company finally faced financial liquidation. At present, the company is not able to pay the salaries to its employees and to avoid being involved in the liquidation process, Ernst & Young advised these employees to contact the Protection of Wages on Insolvency Fund to seek their advance.
Affected by the global financial crisis, several Hong Kong companies have been involved in the bankruptcy wave, including the Hong Kong-listed toy manufacturer Smart Union Group, the small home appliances manufacturer Bailingda, U-right International Holdings, and 3D-Gold Jewellery Holdings.
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