A floating restaurant that was a famous landmark in Hong Kong has sunk, days after it was being towed away from the harbour where it operated for close to 50 years, according to BBC report.

The Jumbo restaurant capsized in the South China Sea while on its way to an undisclosed location, its parent company said.

Aberdeen Restaurant Enterprises said it was "very saddened by the incident" but that no crew members were injured.

The restaurant closed in March 2020 as the Covid-19 pandemic hit.

More than 3 million guests are believed to have eaten its Cantonese cuisine over the years, including the Queen, Tom Cruise and Richard Branson.

The restaurant that was popular with the rich and famous as well had featured in several Hollywood films but the COVID-19 pandemic caused it to abruptly shut shop as customers dried up.

Marine engineers had been hired to inspect the floating restaurant before the trip, and "all relevant approvals" had been obtained, the owners claimed.

The vessel was due to stay at an undisclosed location while it awaited a new operator.

But it sank on Sunday near the Paracel Islands after it "encountered adverse conditions" and began to take on water, Aberdeen Restaurant Enterprises said.

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