The Jumbo Floating Restaurant was towed away from the city and capsized in the South China Sea less than a week later.
The restaurant encountered adverse conditions on Saturday as it was passing the Xisha Islands, also known as the Paracel Islands, and water entered the vessel and it began to tip.
Efforts to save the boat failed and it capsized on Sunday.
The water depth at the scene is over 1,000 meters, making it difficult to carry out repairs.
The company is very sad by the accident.
The Jumbo Floating Restaurant was a landmark in Hong Kong, serving Cantonese cuisine to over 3 million guests, including Queen Elizabeth II and Tom Cruise.
All of its staff were laid off. Aberdeen Restaurant Enterprises said the restaurant became a financial burden to its shareholders because of the millions of Hong Kong dollars spent on its inspection and maintenance.
The restaurant was removed from the street. It was going to be moved to a lower-cost site for maintenance.
The vessel was thoroughly inspected by marine engineers before it left, and all relevant approvals were obtained.
The company is getting more information from the towing company.