Local Neway KTV branches not impacted by bankruptcy requests

Popular local KTV hotspot Neway Karaoke Bar will not close its operations in Macau, despite the group’s Hong Kong-based parent company legal issues, the company stated to Macau Concealers.

Hong Kong-based Neway Entertainment Limited operates some 14 KTV branches in Hong Kong, mainland China and Malaysia, including two outlets in Macau, one at the Chong Fok building and another at Hotel Beverly Plaza.

The company provides several sizes of karaoke rooms equipped with lounge sofas, TV screens, karaoke machines, while also providing food orders.

According to Hong Kong news website Stand News, Neway Music Limited – a subsidiary of Neway Entertainment Limited – received a creditor petition for liquidation by the Hong Kong Karaoke Licensing Alliance Limited yesterday, with a hearing scheduled for July 28.

The petition was said to have been on behalf of the three major record companies, namely Universal, Warner and Sony concerning unpaid fees for KTV music videos.

Last year Hong Kong authorities ordered the closure of karaoke establishments three times due to the pandemic progression.

Media reports also previously quoted Neway Karaoke employees as saying that they did not receive their salary on the payday in early April with no explanation provided. 

A Neway spokesperson later stated that the company was making suspension arrangements for all employees of the company, involving nearly 500 employees.

Neway Entertainment Limited was founded in 1993 by Neway Group Holdings Limited.