Customs officers on Thursday said they had arrested a director of the cake shop chain Crostini which closed down without warning last week, leaving some customers with prepaid coupons they can't redeem.

A man, 55, was arrested on suspicion of violating the Trade Descriptions Ordinance and has since been granted bail pending further investigations.

"After investigation, it was revealed that customers who had purchased cake coupons or gift vouchers were unable to redeem the products concerned nor receive any refund of payments after the bakery chain suddenly announced that it had suspended its business. Customs officers therefore arrested a 55-year-old male director of the bakery chain today," a statement said.

Officers said they had received 104 complaints about the bakery chain, involving coupons and vouchers worth a total of around HK$270,000.

Lui Ngai-kuen, deputy head of the Customs and Excise Department, said one customer was owed products to the tune of HK$17,500.

Crostini earlier cited a downturn in business due to the pandemic for its decision to stop trading.