The Moon Lok Chinese Restaurant in the Xiqu Centre is being sued by the West Kowloon Cultural District Authority for failing to pay HK$12.1 million in outstanding rent and for air-conditioning and management fees since 2020.
In a writ filed in the High Court, the authority is also demanding that Million Bloom Holdings, which operates the restaurant, move out.
The writ states Million Bloom rented space on ground and first floors of the Xiqu Center from April 2018 for five years to operate the Moon Lok, with monthly rent of HK$277,000 for the first year and then increasing annually up to HK$314,000 in the fifth year.
In addition, Million Bloom was to pay monthly a management fee of HK$69,345 and an air-conditioning charge of HK$69,345 as well as government rates and other fees. And interest would be charged if it was in default.
The WKCDA alleges Million Bloom had been in default of payment of rates since January 2020 and did not pay management and air-conditioning fees since February of that year and then the rent from July 1, 2020.
That made for a total arrears of approximately HK$12.1 million by September 30 of this year.
Moreover, Million Bloom had not returned the premises resulting in further losses on rent. The West Kowloon Cultural District Authority was therefore requesting that the High Court order that in addition to repaying the arrears Million Bloom should continue to pay rent and management fees until handing over vacant possession and also to compensate for the loss.
Media professional Luke Tsang Chee-wah posted an article on his blog last Friday, saying several months ago a source told him "the Moon Lok Chinese Restaurant is about to close."
Tsang said the restaurant has been through the challenges brought by social movements and the pandemic, so it had been impossible to do business for a long time.
He also noted that "there were no customers because there were no [performances] in the Xiqu Centre."