Gelonghui, December 29 | Oaks International (02080.HK) announced that on the date of this announcement, the Group is operating a brand called Zentral Clubhouse on a leased property at California Tower, 30-32 D'Aguilar Street, Central, Hong Kong. The existing tenancy agreement relating to the leased property will expire on June 30, 2024, but the option to renew the tenancy agreement can be exercised no less than six months before the lease expires.
The board of directors of the company noticed that the Group's lifestyle and entertainment business has been in adversity in recent years. This is mainly due to the impact of the COVID-19 pandemic, which has led to a partial loss in each of the three years ending March 31, 2023. The board of directors believes that the future of the lifestyle and entertainment business is still uncertain, and given the current market, it is unlikely that its division's operating performance will turn a loss into a profit in the near future. As a result, the Board has decided not to exercise the renewal option attached to the lease agreement. The Group will further discuss restoration arrangements with the owners, with the expectation that the leased properties will be vacated and returned to the owners by June 30, 2024.
Zentral is about to close as the lease agreement expires. Furthermore, the Mini Club restaurant and bar in Mongkok (another existing business of the Group's lifestyle and entertainment business) will also cease operations after December 31, 2023 due to the upcoming expiration of the relevant lease agreement.