Hong Kong furniture and appliance retailer DSC has collapsed, closing all 14 stores and leaving 900 staff out of work.

According to documents filed in court, the company owes staff an estimated $10 million in unpaid wages, and has debts to landlords and suppliers. Yesterday’s closure followed several weeks of rumours and speculation surrounding the company’s solvency and followed a storewide 50 per cent off sale, presumably organised as a means of raising quick cash.

The Hong Kong Standard newspaper reports stores had only accepted payment in cash for the last week or so.

Labor-sector lawmaker Kwok Wai-keung said DSC staff have yet to receive their July wages.

Hong Kong’s Labor Department has set up a hotline to help affected staff and in the first 24 hours had already been approached by 200 people.

The secretary general of the Hong Kong Furniture Association, Christine Lung Yuet-yu, told The Standard: “The big shop size and low profit margin of DSC, which targeted the mid- to low-end market segment, made its operation difficult.”

Further comment, including reactions from customers and staff, can be found in The Standard’s report here.