Rent lawsuit adds to tutorial hub's woes

A Ho Man Tin branch of shuttered Brilliant Education is being sued by Link Properties over HK$1.88 million in rent arrears since last February, according to a writ filed with the high court on Wednesday, just as the tutorial center claimed its Chai Wan branch would reopen as soon as possible.

In the writ, Lzye (HMT) and a director of Brilliant Education, Margaret Pang Tse-tung, were listed as defendants.

Link Properties said it had signed a five-year lease with Lzye for five years on May 1, 2019, for shop 11 on the ground floor of Homantin Plaza.

The monthly base rent for the first three years was HK$210,000, which increased to HK$240,000 in the fourth and fifth years.

But Lzye has failed to pay the rent since last February and the arrears amounted to more than HK$1.884 million as of Wednesday, including other service charges and government rates.

Link Properties also said Lzye and Pang entered into a deed of guarantee dated April 23, 2019, that made Pang responsible for paying the rent in the event that Lyze failed to assume all obligations and liabilities.

It sent a letter to Lzye and Pang on July 28, demanding Lzye yield up vacant possession of the unit on or before July 31.

But Lyze has refused to do so even as the arrears have remained unpaid, it said.

As of yesterday, Lyze owed Link Properties HK$1.44 million in unpaid rent, service charges of HK$395,940, and HK$48,833 for government rates.

The claim about the Chai Wan reopening came in a notice put up in Pang's name at the branch in Youth Square.

Its Kornhill branch resumed tutorial services on Saturday, although students were asked to go to a nearby classroom under another brand.

Brilliant Education, which has been operating for 27 years, announced the immediate closure of its five centers on July 29, saying its "historical mission has been fulfilled."

The closure left more than 300 victims seeking refunds of over HK$2.5 million in fees.

Pang, 50, was arrested on August 1 over claims she accepted payment for prepaid tutorial programs - a breach of the Trade Descriptions Ordinance.

The Education Bureau has said that the Ho Man Tin branch is registered under a different entity and that it is in close communication with law enforcement authorities in investigating a suspected Education Ordinance breach.