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Liquidators appointed as RMJM Hong Kong goes under

Liquidators have been brought in to take over the affairs of RMJM Hong Kong Limited after it was officially wound-up on Monday (24 February)

The company, which had recently been fined for ‘wage offences’ and was being pursued by 25 former staff for £236,000 in unpaid salaries, had been subject to at least four of winding-up petitions in recent months.

It is understood the company will continue trading in the region as RMJM Red - a new company which was set up late last year.

Group commercial director Declan Thompson, who was one of RMJM Hong Kong’s directors, said the demise of the company had not unsettled the outfit’s wider plans.

He said: ‘RMJM Hong Kong was always being wound down in favour of the structure we have been putting in place. You will see more of this as we continue to clean up the legacy stuff.’

RMJM HK was always being wound down

Thompson claimed it had, at one point, racked up US$10million of liabilities and had spent time since ‘rebuilding the business’.

‘With the support of the creditors, that balance has actually been reduced by between 80 per cent and 90 per cent as of [24 February].

‘We had one creditor that refused to work with us and brought about an end to the company sooner than we had planned, effectively depriving the other creditors of the opportunity to get paid, which is a shame.’

Thompson also denied allegations that the five ‘new’ studios which RMJM claimed it had opened in China, Pakistan, Bolivia and South Africa were actually franchised outposts of existing firms, which had simply been allowed to use the 58-year-old company name.

He said: ‘[This is] absolutely rubbish. They are all new RMJM studios. [The way these studios] have been formed ranges from a combination of partnerships with practices which are the leaders in their fields with existing operations, to highly talented people we have gathered together to form a new studio in an office that did not exist before.’

 

 

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