Home appliance and furniture chain DSC has decided to close all its outlets, throwing 900 people out of work.
The company made the announcement on Monday, citing financial difficulties, according to public broadcaster RTHK.
The chain store had been rumored to be on the verge of collapse.
An unnamed employee said suppliers had stopped deliveries even as the company frequently launched clearance sales at fire-sale prices.
One branch began taking cash again just last week, the employee said.
District councilor Kwok Wai-keung who represents trade unions said 50 employees had asked him for help.
The company owes worker about HK$10 million (US$1.28 million) in wages, he said.
Kwok criticized management for not providing any contingencies for the staff.
Meanwhile, the Labor Department opened 13 special counters in its job centers and a hotline for former DSC employees.
Also, it said it has contacted DSC for more information.
The Consumer Council has received 232 inquires and 42 complaints regarding the closure.
Most customer complaints were about the non-delivery of orders.
The council said DSC should refund customers or arrange for delivery of pre-ordered or paid products.
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