The lawmaker representing wholesale and retail said on Wednesday he believes people buying bread from the mainland contributed to the demise of bakery chain Taipan.

After more than four decades, the firm announced it had ceased operations on Tuesday.

Speaking on an RTHK radio programme, Peter Shiu said baked goods are cheaper on the mainland and come in greater variety.

"Now that travelling north is very convenient, if people go there, sometimes they will buy some bread to bring back," he said.

"Of course, if they buy it on the mainland, then that can have an effect on sales here.

"Or perhaps even some cross-border online shopping platforms are taking orders for Hong Kong.

"That would also severely compromise the local bakery sector."

Shiu also said rents are one of the significant burdens for firms, and suggested tenants talk to their landlords sooner regarding the matter.

The Hotels, Food and Beverage Employees Association's general secretary, Nerine Yip, told the same show that the group has so far helped about 200 staff file reports with the Labour Department, with total claims amounting to around HK$38 million.

She said the claims mainly involved salaries for May, payment in lieu of notice, severance and long-term service payments, as well as holiday pay.

Yip also said workers had anticipated the closure before the announcement was made.

"The staff said that, based on past experiences, Taipan should have started selling snowy mooncakes in mid-June, and it would then have started recruiting factory workers to make snowy mooncakes as well as for the packaging," she said.

"As there had been no news of this this year, they were not optimistic."

Yip said a well-known and large-scale baked goods factory is interested in recruiting Taipan staff, and that the association will also work with the Labour Department to hold job fairs to help those affected.