Coronavirus Hong Kong: top travel agency to shut down permanently as pandemic takes toll on profits
- Parent company of Hong Thai Travel Services announces agency will begin voluntary winding-up proceedings, citing ‘plummeting profitability’ and inability to settle debts
- Travel agency earlier said it would temporarily close all branches until Hong Kong fully reopened to mainland China and rest of the world
Hong Thai Travel Services, one of Hong Kong’s oldest and largest travel agencies, will shut down after its profits took a nosedive during the Covid-19 pandemic, its parent company has announced.
In a statement released on Friday, Caissa Tosun Development said its board of directors agreed in a meeting the day before that Hong Thai should be wound up, adding the pandemic had undercut its business in Hong Kong, Macau and Guangdong province.
“Its profitability has plummeted. The agency has been unable to repay its debts that have fallen due and clearly lacks the ability to settle debts,” a spokesman said.
“In view of this, the company has decided to initiate the voluntary winding-up procedure in order to handle the debts fairly and protect the legitimate rights and interests of the company, shareholders and creditors.”
He added that liquidating the travel agency would help to lighten the operational burdens on the parent company and would not impact the larger business’s performance.