He faces a life sentence if convicted of national security crimes. Apple Daily said its board will decide whether to shut the publication at their next meeting on Friday following an asset freeze by authorities that left the media company unable to pay employees.
The Hong Kong pro-democracy newspaper's financial news team said in an article it had already suspended its online edition as of Tuesday morning.
Several Hong Kong media outlets said Apple and its online publication would cease operations by Wednesday as most of the paper's staff had resigned.
An adviser to the jailed Jimmy Lai, who owns Next Digital and who is a vocal China critic, told Reuters the paper would be forced to close "in a matter of days."
A senior company source said the freezing of Apple's core assets - before any trial or due legal process proved the commission of a crime - had made it impossible for the company to pay wages or electricity bills.
Next Digital's board had sent a letter to Hong Kong's Security Bureau to ask that some assets be unfrozen in order for the company to avoid violating labor laws.
Lai's adviser, Mark Simon, said some reporters had received threatening phone calls from unknown persons. "Our staff are now worried about their safety," he said, according to Business World.
The new security law gives authorities the power to freeze assets of any individual or company in Hong Kong that is deemed to be a security threat. It does not require a court order.
The case against Apple Daily chief editor Ryan Law and publisher Cheung Kim-hung was adjourned to Aug. 13, based on a decision by Chief Magistrate Victor So.
Law, 47 and Cheung, 59 face charges of conspiracy under the new national security law. Their request for bail has been denied.
Three other senior executives were arrested last week and released pending further investigation.
Meanwhile, the Committee to Protect Journalists on Monday announced it is honoring Lai with its 2021 Gwen Ifill Press Freedom Award.
The CPJ was founded 40 years ago to fight for journalists who are "attacked, imprisoned or killed," The Wall Street Journal said.
Lai will not be able to accept the award in person because he is locked up in prison in Hong Kong.
He faces a life sentence if convicted of national security crimes.
