The once-famous but financially troubled Hong Kong tourist attraction Jumbo restaurant capsized in the South China Sea after being dragged away from the city, according to the restaurant's parent company, Tuesday.

The water depth at the area exceeds 1,000 meters, making salvage operations quite impossible, the report said.

It capsized Sunday near the Paracel Islands after "encountering extreme weather" and beginning to take on water, a statement released by Aberdeen Restaurant Enterprises on Monday disclosed.

The company stated that it was "extremely upset by the situation" but that there were no crew members hurt.

It was stated that marine engineers were recruited to check the floating restaurant and put essential stocks on the vessel prior to the voyage, and that "all clearances" had been secured.

After nearly a decade of financial difficulties, the floating eatery shuttered in March of 2020, blaming the COVID-19 outbreak as the last straw.

Since 2013, the company's operator, Melco International Development, has reported cumulative losses exceeding 100 million Hong Kong dollars ($12.7 million).

It continued to cost millions annually in maintenance expenses, and over a dozen corporations and organizations rebuffed an invitation to take it over for free, Melco said.

It was revealed last month that Jumbo would leave Hong Kong before its licence expired in June and await a new operator at an unspecified location.

The establishment left the typhoon shelter in southern Hong Kong Island where it had been for nearly half a century on Tuesday just before noon.

It was reputedly constructed at a cost of more than 30 million Hong Kong dollars ($3.8 million) and was opened in 1976 by the late casino magnate Stanley Ho.

The restaurant, which was previously regarded a must-see landmark and was designed to resemble a Chinese imperial palace, attracted guests such as Queen Elizabeth II and Tom Cruise.

It was also utilized in a number of films, including Steven Soderbergh's "Contagion," a film about a global pandemic.

In addition to its ornate imperial facade and swathes of neon lighting, the stairway features a big commissioned artwork and brightly colored Chinese-style decorations, including a golden throne.

The departure of Jumbo from Hong Kong was embraced with regret and nostalgia by a great number of Hong Kong citizens.

Some internet critics compared images of the floating palace drifting through a charcoal-gray ocean towards the horizon to the future of Hong Kong.

Beijing's imposition of a national security law has repressed opposition, reshaping Hong Kong in the image of China's rule.