One of Hong Kong's most famous restaurants, Au Trou Normand, will close next month, pressed out of business by rising costs.
The restaurant's director, David Yick Hok-wing, said a rent reduction was requested but the landlord's offer of 7 per cent was insufficient to avoid closure.
The Sars outbreak added to its woes.
The eatery, offering the classic dishes of Normandy, has been a landmark in Tsim Sha Tsui for 39 years. It will close on May 8 when the lease expires.
Founded by a former French paratrooper, Bernard Vigneau, in 1964, the 60-seat restaurant was a slice of Europe in Tsim Sha Tsui. It employs 25 people, several of whom have worked there for more than 30 years.
Au Trou Normand management was told rent would remain at $122,000 a month, plus management fees, air conditioning charges, rates and other expenses. 'With the present level of business, we could not keep our doors open paying that sort of rent,' Mr Yick said.