Retailer Yaohan Hongkong Corp (YHK) is expected to be wound up after the collapse of its core department store operations and the resignation of all directors, sources say.
This is the most likely avenue, they say, because no rescue funds have materialised since the nine stores in Hong Kong and one in Macau went into liquidation with $1.2 billion in liabilities.
There was speculation Citic Australia and China Venturetech Investment Corp might be attempting a rescue after the Hong Kong stores filed for bankruptcy last November. The Macau store collapsed last month.
YHK's electrical appliance distributing arm Yaohan Best also collapsed two months ago, leaving no valuable assets in the company.
Since December, a management vacuum has seen YHK's 12 directors resign.
Sources said creditors received virtually no payments even after the 'all must go' sale of the remaining inventory for about $20 million. Most creditors are suppliers of the department stores.