Recently, the beauty company La Raine unexpectedly shut down all four of its branches, leaving at least eight employees without pay. They have since reached out to the Labor Department for assistance. On the 13th, the company’s boss sent a WhatsApp message to employees at 8 a.m., explaining that the company was experiencing financial difficulties and was facing bankruptcy, leading to the decision to halt operations. When employees returned to the branches to gather their belongings, they found that the phones, customer information, and beauty products had been removed. Up to 300 clients who pre-paid for beauty treatments were affected by the closure. An investigation is ongoing with the Labor Department, Customs, and Consumer Council. An anonymous employee who worked at La Raine explained that the company had consistently delayed payments to employees, even in the earlier months of this year. Despite concerns from employees, the company continued to purchase new equipment, and on April 2, the boss held a two-hour sales training meeting. Some staff members resigned, and one of them reported completing a 4,000 yuan facial treatment course which they never received. The closures have affected customers and employees alike, leaving many unanswered questions about the future of La Raine.
The 4 branches of the beauty company La Raine suddenly closed down yesterday (13th). At least 8 employees were owed wages and asked the Labor Department for help. An employee pointed out to “Hong Kong 01” today (14th) that the boss of the company sent a message in the company’s WhatsApp group at 8:00 a.m. yesterday, pointing out that the current operation is difficult and the company is facing insolvency. The Labor Department handles wage arrears matters. The employee pointed out that when he went back to the branch to pick up his personal belongings yesterday, he found that the phone, beauty products, customer information and documents in the branch had been taken away; it is estimated that about 200 to 300 customers who had paid for the treatment were affected. “Hong Kong 01” is inquiring about the incident with the Labor Department, Customs and the Consumer Council.
Ms. Wang (pseudonym), an employee of La Raine, said that the branch opened at 11 am on weekdays, but at 8 am yesterday (13th), the boss Mr. Huang sent a message in the company’s WhatsApp group: “The business environment is difficult now, the company Faced with insolvency, without any new capital injection, the company has no ability to continue to operate, and the business will be suspended immediately. Thank you for the efforts and support of all employees in the past. The company has made a decision to suspend business without any choice. All employees can submit to labor ( Labor) Office for help in dealing with wage arrears.”
Due to the sudden incident, the employee immediately contacted the boss to learn more about the details and to recover the owed wages. However, the mobile phones of the boss and his wife have been unable to get through. The two couples seem to be “disappeared”. Many employees had no choice but to return to each branch to pick up their personal belongings, only to find that the phones, beauty products, customer information and documents in the branch had been taken away, and it was suspected that someone had already planned it.
Ms. Wang said frankly that the company has delayed payment many times this year. In January and February, it also issued “empty checks” to pay salaries. Employees discussed privately, worrying that the company would be in financial danger. However, the boss bought several new machines for training earlier, and the employees believed that the other party still wanted to operate it. Until the 2nd of this month, the boss suddenly spent 2 hours teaching sales skills to the employees, asking the employees to “Sell customers” to follow up. Ms. Wang said frankly that the company had never had this kind of “sales skills meeting” before, so the employees were also surprised. Later, some full-time and part-time employees sent letters to resign. Ms. Wang is currently in arrears of about 7,000 yuan in salary, and a group of employees have also registered with the Labor Department yesterday.
Ms. Wang estimates that 200 to 300 customers who have paid for the treatment are currently affected. However, because the customer information and the phone numbers of each branch have been taken away, and the company’s office building has not been opened, it is currently impossible to notify the customers. As far as she knows, on April 12th, a customer was introduced by a staff member and bought a 4,000 yuan course of treatment. Yesterday the staff member informed the customer of the completion of the course, and the customer also called the police for help. Some netizens also left messages on the La Raine social platform page today, saying that they could not call the branch, and asked the company to explain whether the business will be closed and follow-up arrangements.
Today, the reporter went to La Raine’s branches in Quarry Bay, Diamond Hill, Yau Tong, etc. to learn about the situation, but the gates of the branches were all closed, and a note was posted on the gates of the Kornhill Plaza branch that said “inventory and interior decoration, closed business” , the store was dark and dark; the Plaza Hollywood branch was also closed, and a notice was posted saying “Inventory renovation, closed business”; the reporter went to his office building in Sha Tin later, but the unit was locked, and nearby merchants pointed out that La Raine’s office building has not opened for a long time. The reporter then called the phone numbers of each branch, the boss Huang Sheng and the boss’s wife to inquire, but no one answered. “Hong Kong 01” is inquiring about the incident with the Labor Department, Customs and the Consumer Council.
The sudden closure of La Raine’s branches has caused distress among employees and customers alike. With at least 8 employees owed wages and an estimated 200 to 300 customers affected, the situation is concerning. The disappearance of the company’s owners and the removal of valuable items from branches only adds to the suspicion that this was a planned event. As the Labor Department, Customs, and the Consumer Council investigate the situation, we hope that those affected will receive the support they need during this difficult time.