The demise of Hong Kong bakery chain Crostini has sparked fears of a wave of catering industry closures after a Covid-related rent deferral scheme expired, with one representative saying around 2,000 firms may have to shut if they cannot pay outstanding sums this month.
Crostini, which had at least 10 branches in the city, announced its shutdown on Tuesday night. Its founder Huang Guanghui told HK01 that cash flow dried up when landlords started demanding repayment of outstanding rent after the government’s three-month protection period ended in July.
Huang said business at his cake shop chain had fallen by two-thirds since the start of the Covid-19 pandemic more than two years ago, and he had already used his own assets and loans from friends to inject over HK$80 million into the company.
https://hongkongfp.com/2022/09/15/wave-of-catering-closures-feared-as-hong-kong-bakery-chain-crostini-crumbles/