Around 200 employees of Taipan Bread & Cake are now seeking assistance for unpaid salaries totaling HK$28 million following the announcement on Tuesday regarding the bakery chain's closure.
Speaking to Sing Tao Daily, the sister publication of The Standard, the head of the Eating Establishment Employees General Union's labour rights committee Chiu Kwun-chung noted that most affected employees are from the company's branches.
Chiu anticipated that more employees might reach out, given the number of factories and branches the company operates.
Yip Lau-ching, general secretary of the Hotels, Food & Beverage Employees Association reported receiving inquiries from approximately 200 affected employees, which involved salaries for May and June, payment in lieu of notice and severance payments.
Yip indicated that the Hong Kong Federation of Trade Unions has been receiving reports about overdue salaries since the evening of June 20, with sources stating that the bakery chain internally notified the closure of all branches on Monday (June 23) evening.
The Labour Department has received around 120 inquiries from affected employees as of 3pm on Tuesday and is providing appropriate assistance. The outstanding wages and dismissal compensation amounted to HK$16 million.
The Consumer Council received three complaints related to the closure of Taipan Bread & Cakes, involving a total of HK$2,350.
Lawmaker Dennis Leung Tsz-wing revealed that the salary arrears at Taipan had emerged as early as May, when employees initially believed the company could overcome its difficulties.
While a Protection of Wages on Insolvency Fund is available after liquidation, the chairman of the Federation of Hong Kong and Kowloon Labour Union Lam Chun-sing highlighted that there is a cap on compensation for affected employees, and the liquidation process can take months.
Meanwhile, a landlord of the bakery's branch in Aberdeen filed a writ to the District Court, seeking over HK$30,000 in rental and related interest.
The writ was filed by Aberdeen Commercial Investments Limited, which leased the premises on the ground floor of the Commercial Podium of Site 4 in Aberdeen Center to Taipan Bread & Cakes Company Limited.
The three-year tenancy agreement between the two companies commenced on December 5, 2024. However, the respondent failed to pay the service and other charges between May 1 to June 30, as well as rent from June 1 to 30.
Aberdeen Commercial Investments is seeking compensation from the respondent for HK$317,700 in outstanding payments, interest on the unpaid amount along with damages for breach of the tenancy agreement and other related compensation.
(Updated at 7.07pm)
