Store operator cites poor sales and high rents for cutbacks
One of Hong Kong's oldest department store chains, Wing On, has had to close two of its six branches, in Hunghom and Kowloon Bay, because of poor sales and soaring rents.
The company, established in 1907, said its 58,000 sq ft outlet in Whampoa Garden would close on Sunday after 12 years of operating in the district.
The move came after it closed an 80,000 sq ft shop in Telford Gardens, Kowloon Bay, on Lunar New Year's Eve.
A company spokeswoman said: 'The two unprofitable stores will continue bleeding if we renew rental leases because it is out of our budget.'
Wing On had no immediate plans to look for replacement sites in less expensive locations, she added.
The spokeswoman said about 150 staff would be affected by the closure, adding that it had already sacked 130 employees.
