Financial scandal forces closure of Channel C as employees go unpaid, takeover notices posted

Hong Kong

2025.04.27 12:29

Channel C, a Hong Kong-based online media outlet often criticized for its anti-government focus, has ceased operations following a series of financial scandals. The company, along with its parent firm Artview Production Limited, is accused of defrauding the government of HK$12 million under the "Special 100% Loan Guarantee." Four individuals, including company directors and staff, were arrested earlier this month.

On April 23, Channel C stopped updating its website and social media platforms, while its office in Kwai Chung was locked down, with takeover notices posted by creditors. The company's owner reportedly pledged 80% of its shares as collateral for loans amounting to several million HK dollars. The failure to repay these loans has triggered creditor-initiated takeover proceedings.

The closure comes after months of financial challenges, during which Channel C failed to pay its 29 employees for six months, resulting in HK$660,000 in unpaid wages. Additionally, the company has not contributed to the Mandatory Provident Fund (MPF) for 18 employees since October 2024, adding HK$230,000 in arrears.

Affected employees have reportedly ceased work, taken leave, or resigned, as their employment contracts were effectively terminated under HK law due to the prolonged non-payment of wages.

The MPF Schemes Authority confirmed that it has been pursuing civil claims and enforcement actions against Channel C and its parent company since November 2024. Cases have been filed with the Small Claims Tribunal to recover unpaid pension contributions, but these efforts are ongoing.

Channel C, established in July 2021, has frequently faced allegations of misleading the public and inciting hatred through its reporting. Financial difficulties have plagued the company in recent years, with former employees publicly accusing it of wage arrears and mismanagement. The company's owner, who also operates a logistics business, has faced scrutiny over chaotic financial records and debt collection posters targeting his businesses.

The MPF Schemes Authority emphasized the importance of employers fulfilling their legal obligations to contribute to employees' pension funds and urged employees to report suspected violations promptly.