Bakery chain exec arrested

Customs officers have arrested the director and founder of the defunct Crostini bakery chain after receiving 104 reports from customers who bought 5,300 coupons worth HK$270,000 before it closed suddenly earlier this month.

Huang Guanghui, 55, was released on bail yesterday, but said he "couldn't reveal details."

Customs and Excise Department said the largest single sum among the 104 reports was HK$17,500 in coupons.

Lui Ngai-kuen, acting deputy head of the department, said some customers purchased coupons half a month before Crostini's sudden closure of all its 15 shops without warning. Gift certificate redemption periods ranged from the end of this year to 2025.

Lui called on any more people affected to contact the department and to provide purchasing details and receipts and also their unredeemed coupons.

"The investigation is ongoing and customs will keep in touch with the Consumer Council to investigate," he said. "More arrests cannot be ruled out."

Customs officers sent a message to merchants that they needed to be fully aware of the terms of the Trade Descriptions Ordinance and also told consumers to consider carefully before purchasing cake or gift coupons.

Among other things it is an offense for a trader to accept payment with the intention of not supplying a product or supplying a product significantly different from what has been listed.

Lui added that if a Crostini worker had known the chain could close but still sold coupons they could be in trouble.

People who are convicted under the ordinance can be imprisoned for up to five years, while the maximum fine is HK$500,000.

Crostini was established in 2013 with its first outlet in Kwun Tong.

The company had expanded to 25 outlets by 2019, but this number was reduced to 15 six months before September 13 when Crostini announced the closure of all its outlets.

Huang had said earlier that he was reluctant to close the Crostini chain and had fought to keep it operating, even borrowing HK$80 million from friends to settle debts.

stacy.shi@singtaonewscorp.com