Next Digital walks back its notice about ceasing operations, as publisher of defunct Apple Daily says sorry for misleading staff

Next Digital, publisher of Apple Daily which printed its final edition last week, says it is still operating
The company had obtained HK$33 million in government grant last summer to help pay employee wages amid the Covid-19 pandemic

Next Digital

Georgina Lee

Published: 8:28pm, 2 Jul 2021

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Next Digital, which stopped publishing its flagship newspaper Apple Daily last week, has reversed its announcement to cease operations just two days after telling staff that it would shut down on July 1.

The troubled media company apologised to employees for the “wrong message” and said that it was still operating while it makes “personnel arrangements”, according to a Bloomberg report, which cited an internal memo.

“Regarding the email dated on June 30 mentioning that the group would cease operations, the department hereby clarified that the group is not ceasing operations, but making personnel arrangements,” the memo said.

Representatives from Next Digital were not immediately available for comment on Friday.

Workers wave outside the headquarters of the Apple Daily newspaper and its publisher Next Digital in Hong Kong, after publishing its last edition. Photo: Bloomberg

It was not immediately clear if Next Digital, founded by the now-jailed businessman and activist Jimmy Lai Chee-ying who is awaiting trial on charges relating to alleged collusion with a foreign country, owed outstanding wages to its employees.

As of September 30 last year, the group had a total of 2,095 employees, of whom 1,228 were in Hong Kong, 866 were in Taiwan and one in the US, according to its 2020 interim report. The loss-making company claimed its average net circulation per issue stood at 86,189 copies per day between April and September 2020.

Next Digital had received a grant of HK$33 million (US$4.24 million) under the Hong Kong government’s “employment support scheme” for June to August 2020, according to information disclosed in its interim report for the six months ended September 30 last year.

The scheme was designed to help employers retain staff and pay their wages who would otherwise have been made redundant in light of the economic hardships caused by the Covid-19 pandemic last year.

Trading in Next Digital’s shares has been halted since June 17 in Hong Kong when the police arrested Apple Daily’s editor-in-chief, publisher and three other executives, and blocked access to its bank accounts. The newspaper’s lead editorial writer was detained on June 23 on suspicion of conspiracy to collude with foreign forces. The company said the trading suspension would remain until further notice.

06:28

Hong Kong tabloid Apple Daily ceases operations after top executives arrested, assets frozen

The latest development comes after the company disclosed in an exchange filing on Wednesday that a potential purchaser had reached a tentative agreement to buy assets, including land measuring about 19,734 square feet in Taoyuan, Taiwan together with five buildings, for NT$500 million (US$18 million).

Earlier on Tuesday, Next Digital said that it had received a proposal from an undisclosed “potential purchaser” that could lead to a possible disposal of Amazing Sino International, which publishes the online edition of Taiwan Apple Daily. The proposal is subject to due diligence and an agreement could be signed by July 30.