Two executives of Moulin Global Eyecare have been arrested for alleged accounting fraud charges after the company went into provisional liquidation with debts of around HK$5.33bn (£390m).
Two executives of Moulin Global Eyecare have been arrested for alleged accounting fraud charges after the company went into provisional liquidation with debts of around HK$5.33bn (£390m).
Moulin owns NiGura Metzler in Europe and holds licences for brands including Reebok, Benetton and Longines. Last year it fought a long-running battle for the ownership of the Cole National retail chain in the US, losing out to Luxottica. It has since acquired a 56 per cent share in Eye Care Centers of America (ECCA), the US's second largest optical retailer with 375 outlets. But the ambitious Hong Kong company is now the subject of a liquidation petition from 29 banks, led by HSBC. Attempts to restructure Moulin have failed and accounting irregularities at the company have emerged.
Hong Kong police confirmed that two directors and three employees had been arrested for conspiring to defraud. Both directors have the surname Ma and are believed to be Moulin chairman Ma Bo Kee (pictured) and his son Ma Lit Kee. One report suggested that the company's cash flow had been exaggerated to obtain loans.
Problems began in April when Moulin Global Eyecare (formerly Moulin International Holdings) cancelled a $320m bond issue designed to cover debts arising from the US$250m purchase of ECCA.
A provisional liquidator, Ferrier Hodgson, this week dismissed 136 staff at the Hong Kong office as it attempted to cut costs find potential buyers. Early reports had suggested Luxottica, De Rigo or Marcolin may be interested in the group, but the only official approach has come from Hong Kong's Willie International Holdings.
Metzler UK managing director Geoff Thomas said 'Metzler International has not been affected and we are trading normally. We know that Ferrier Hodgson are talking to investors with a view to them buying the Moulin company . We are having one of best years in recent times in terms of sales, so its business as usual.'
Moulin owns NiGura Metzler in Europe and holds licences for brands including Reebok, Benetton and Longines. Last year it fought a long-running battle for the ownership of the Cole National retail chain in the US, losing out to Luxottica. It has since acquired a 56 per cent share in Eye Care Centers of America (ECCA), the US's second largest optical retailer with 375 outlets. But the ambitious Hong Kong company is now the subject of a liquidation petition from 29 banks, led by HSBC. Attempts to restructure Moulin have failed and accounting irregularities at the company have emerged.
Hong Kong police confirmed that two directors and three employees had been arrested for conspiring to defraud. Both directors have the surname Ma and are believed to be Moulin chairman Ma Bo Kee (pictured) and his son Ma Lit Kee. One report suggested that the company's cash flow had been exaggerated to obtain loans.Problems began in April when Moulin Global Eyecare (formerly Moulin International Holdings) cancelled a $320m bond issue designed to cover debts arising from the US$250m purchase of ECCA.
A provisional liquidator, Ferrier Hodgson, this week dismissed 136 staff at the Hong Kong office as it attempted to cut costs find potential buyers. Early reports had suggested Luxottica, De Rigo or Marcolin may be interested in the group, but the only official approach has come from Hong Kong's Willie International Holdings.
Metzler UK managing director Geoff Thomas said 'Metzler International has not been affected and we are trading normally. We know that Ferrier Hodgson are talking to investors with a view to them buying the Moulin company . We are having one of best years in recent times in terms of sales, so its business as usual.'