Because of HKD100 million debt and other financial problems, the Hong Kong-based electronics retailer store Tai Lin Radio Service Limited announced its bankruptcy and operations at its 13 stores have now been suspended.
Lin Zuoli, chairman of Tai Lin, told local media that high store rent, the global financial crisis and declined purchasing power caused troubles to the company's small profits but quick returns strategy. He said he had invested lots of money to save the company, but the efforts were useless. Therefore, they had to hand over the company to a 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 had HKD100 million in debt in August 2008. After failing to find a buyer, the company finally faced liquidation. The company is not able to pay salaries to its employees and to avoid being involved in the liquidation process, Ernst & Young advised these employees to contact Hong Kong's Protection of Wages on Insolvency Fund Board to seek advice.
Affected by the global financial crisis, several Hong Kong companies have been involved in a bankruptcy wave, including the Hong Kong-listed toy manufacturer Smart Union Group, the small home appliances manufacturer Bailingda, U-right International Holdings Limited, and 3D-Gold Jewellery Holdings limited.