Hong Kong clothing manufacturer Youwei International has applied for liquidation

Accounting firm Deloitte said on Thursday that it has been appointed as the provisional liquidator of Hong Kong clothing manufacturer and retailer Youwei International Holdings Limited (0627.HK market), adding that if necessary, it will Represented Youwei International in discussions to reorganize the company’s business or sell assets.
Youwei International has been suspended from trading since September 17 this year. The stock price has plummeted 86% in the past month, and its market value has also evaporated significantly. The company issued an announcement on September 26 stating that some lending banks and financial institutions had Expressing concern about its ability to repay its debt, it suspended its existing short-term loans and froze the bank’s cash balances held by Youwei. The company stated at that time that it was unable to repay its due debts and immediately suspended its rights issue plan worth HK$1.9 billion.
U-RIGHT International, which was listed on the Hong Kong Main Board in November 2000, distributes and sells “U-RIGHT” brand clothing in Hong Kong, China and Macau. As of March this year, U-RIGHT International operates 95 and 516 retail stores in Hong Kong and China respectively. store. The company’s net profit last year was HK$61.37 million, with a turnover of HK$2.08 billion.
Deloitte said in a press release on Thursday that the Hong Kong High Court had appointed the bank as the provisional liquidator of UW International on Monday. The court authorized Deloitte to identify and take care of the assets of Youwei International. If there is a situation that is beneficial to the interests of Youwei International’s creditors, Deloitte will discuss matters such as restructuring the company’s business or selling assets on behalf of Youwei International.
“The provisional liquidators are reviewing Youwei’s operations and are consulting management, creditors and other relevant parties. They are also seeking relevant parties to express interest in acquiring all or part of Youwei’s business,” Deloitte said.
Some stores of Allway International will continue to operate on Thursday, but the Hong Kong Labor Department has set up a hotline to assist employees affected by the decision of the provisional liquidators of Allway International to terminate their employment contracts. As of March this year, UW International had a total of 3,123 employees, of which 491 were employed in Hong Kong and Macau.
Investor confidence and bank credit have suffered as the financial tsunami spread. Uniway International is not the first listed company to be applied for liquidation this year. Last month, Hong Kong watch manufacturer and retailer Yijinli Group (0304.HK market) appointed accounting firm Ferrier Hodgson as its provisional liquidator. Fulicheng said at the time that there was still a chance to rescue Yijinli from its embarrassment. However, the stock has not resumed trading and no latest progress has been announced.