Bakery queen runs out of dough but remains charitable
What do banks and cake shops in Hong Kong have in common?
According to Maria Lee Tseng Chiu-kwan, the 80-year-old Queen of Cakes legend, 'both can cause a run'. With the global economy teetering on the brink, Mrs Lee's homespun philosophy on business and money may be a sound lesson for us all.
Ten years ago, Maria's cake shop chain was liquidated during the Asian financial crisis. She was left with almost nothing from her 32-year investment in the business except an eight-digit personal debt.
The closure also left an estimated 90,000 of Maria's Cakes coupons outstanding in the market with virtually no value, similar to the Lehman Brothers' minibond certificates of today. But thanks to Maria's reputation as a charity worker in the community, the coupons took on a currency of their own, with retail outlets throughout the city offering to honour their value, including cinemas, wedding photographers, greengrocers and even other cake shops.
Declaring bankruptcy could have been a 'piece of cake' for the entrepreneur, but she was made of sterner stuff. She chose to repay her debts over a decade, eking out a hand-to-mouth existence at times.
That was a tough call for an elderly lady, but one she handled with pride. Some are now saying her sacrifice should be emulated by the many Wall Street bankers who took 'golden handshakes' after leading their firms into disaster.