HONG KONG: Jumbo floating restaurant, a once famed but financially struggling Hong Kong tourist attraction, sank in the South China Sea after being towed away from the city, its parent company said Monday.

It capsized on Sunday near the Paracel Islands after it “encountered adverse conditions” and began to take on water, Aberdeen Restaurant Enterprises announced in a statement.

“The water depth at the scene is over 1,000 meters, making it extremely difficult to carry out salvage works,” it added.

The company said it was “very saddened by the incident” but that no crew members were injured. It said marine engineers had been hired to inspect the floating restaurant and install hoardings on the vessel before the trip, and that “all relevant approvals” had been obtained.

The restaurant closed in March 2020, citing the Covid-19 pandemic as the final straw after almost a decade of financial woes.

Operator Melco International Development said last month the business had not been profitable since 2013 and cumulative losses had exceeded HK$100 million (RM56 million).