Hoixe Cake Shop faces liquidation, hearing delayed until January, judge orders payment of HK$1.7 million rental debt within 21 days

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27th November 2023 – (Hong Kong) Embattled Hoixe Cake Shop has been accused of withholding employee salaries and failing to contribute to their pension funds. Following a creditor’s application for liquidation earlier this year, Hoixe Cake Shop’s management company faced a court petition in July filed by the creditor seeking the shop’s liquidation. The case was brought before the High Court for a hearing today (27th), during which Hoixe Cake Shop requested a three-month postponement of the liquidation hearing to allow for discussions with potential investors regarding investment plans. However, the petitioner argued that the proposed delay was excessive and demanded immediate payment of the outstanding rent. Ultimately, the judge decided to postpone the liquidation hearing until 29th January next year and ordered Hoixe Cake Shop to settle the HK$1.7 million rental debt within 21 days.

The company involved in the liquidation proceedings is Hoixe Catering Company Limited, which operates Hoixe Cake Shop. The initial petitioners in the case were Bank of East Asia and Central Town Limited, but they have now been replaced by Link Properties Limited. Hoixe Cake Shop requested a three-month postponement of the liquidation hearing, but the judge pointed out that the petitioner had already obtained judgments for the shop’s unpaid rents across seven properties. Unless Hoixe Cake Shop was willing to make partial rental payments to the petitioner, the judge deemed the proposed delay to be unreasonably long. After further discussions between the parties, the petitioner requested that Hoixe Cake Shop commit to paying two months’ worth of outstanding rent, totaling HK$1.7 million, during the period of the postponed liquidation hearing. Additionally, the shop was required to provide a security deposit to the court. Hoixe Cake Shop stated that during the two-month postponement period, it might develop a restructuring plan, but it could not guarantee the full repayment of its debts at present. The shop is still awaiting investment plans, and it submitted an affidavit in support of its liquidation application.

The judge ultimately rejected the petitioner’s application for the payment of a security deposit and refused to allow Hoixe Cake Shop to submit another affidavit. The liquidation hearing was rescheduled for January next year, and Hoixe Cake Shop was instructed to settle the outstanding rental debt of HK$1.7 million within 21 days. According to the petitioner, Hoixe Cake Shop owes over HK$10 million in debts.