Hong Kong Indie Capital To Halt Work, Lay Off Staff

Capital Artists, one of Hong Kong's oldest independent labels, is ceasing operations and laying off 15 of its 18 employees. The company recently told its staff that all production work will cease immediately, although the firm will continue to exist as a legal entity in order to collect copyright revenues and issue compilations. Capital previously laid off five staff members on Sept. 30.

It is understood that some senior staff members, such as GM Pad Lam and artist and talent manager Portia Lau, will remain until the end of the month to help wind up the business. No company executives were available for comment.

Capital has launched many of Hong Kong's best-selling artists, including Anita Mui, Leslie Cheung, Andy Lau, Leon Lai, and more recently, Sammi Cheng and Miriam Yeung.

In 1996, Capital was acquired by the South China Morning Post Group. The label's prior relationship with leading terrestrial television station TVB had offered a vehicle to promote its artists; after the acquisition, it struggled to find new talent and to break acts. In recent times, Capital has suffered from the defection of key acts to major labels. Its biggest money-maker, Yeung, recently joined Universal Music subsidiary Go East!; Capital was also expecting to lose up-and-coming rocker Denise Ho to EMI.