Police arrested Hui Ming-shun, founder of the now-defunct home appliance and furniture chain DSC, and his wife on their return from Macau on Monday.
The couple have been accused of fraud after they disappeared a day before DSC closed all its 14 stores and left 900 employees jobless on Aug. 3.
Hui, 61, and his wife Lin Wai-yin, 55, were arrested at the Hong Kong-Macau Ferry Terminal in Sheung Wan as they were trying to pass through customs, Apple Daily reported.
The couple were then taken to the police headquarters in Admiralty for questioning, and later to their residence in Kowloon Tong and the DSC warehouses in Yuen Long as police searched for evidence.
It is understood that the couple returned to Hong Kong to talk with authorities and settle obligations with DSC suppliers and employees.
Hui has also reportedly scheduled a meeting with creditors at the Kowloon Bay International Trade & Exhibition Centre on Aug. 25.
DSC suppliers and employees are seeking combined payments of about HK$60 million (US$7.74 million).
At least 350 employees have lodged claims for unpaid salaries with the Labor Department.
About 30 of them attended a mediation meeting organized by Secretary for Labor and Welfare Matthew Cheung Kin-chung on Monday. However, a lawyer for Hui asked that the meeting be rescheduled.
The DSC employees were also scheduled to meet with labor department officials on Tuesday.
They want the government to draw from the Protection of Wages on Insolvency Fund to pay their back wages in the coming four to five weeks.
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