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Frenzy as TV shopper goes bust
By Wu Shen |
November 30, 2009, Monday
|
Print Edition
Print Edition
SUPPLIERS and employees are furiously trying to avert their losses in the wake of the bankruptcy of a local TV shopping company whose owner fled the city with debts of up to 100 million yuan (US$14.6 million).
Hundreds of suppliers have rushed from all over China to ask for their money since learning of the bankruptcy last Friday of the Guxi Company, according to Xinmin Evening News.
Not managing to get a satisfactory answer, some of the angry suppliers burst into the warehouse of the company on Friday, trying to take their products out - the situation almost coming to violence.
When stopped by the police, the suppliers sat at the door of the warehouse until evening to prevent their goods being removed by company insiders.
A franchiser of olive oil said his company hadn't received any promised money from the Guxi Company since it began to provide products to the TV shopping company in May. It's owed about 230,000 yuan ($33,600).
"Since all the oil has been sold out, we cannot get any from the warehouse," said the supplier.
A team has been made up to handle the bankruptcy of the company by a former vice manager of the company surnamed Gu.
More than 20 of the suppliers registered their debt with the team last Friday, with a total amount of tens of millions of yuan.
The property owner of Guxi's office, Zhangjiang Property Management Company, said it was owed more than 270,000 yuan in rent and utility fees.
The Guxi Company also owed about 2 million yuan in unpaid wages to its 210 employees.
The entirety of debts is expected to reach 100 million yuan, according to the newspaper.
The sudden closure of the company caused panicked employees to come to the office to demand an explanation and the unpaid wages.
Police allowed them to take only their belongings from the office. A notice said the employees could get notice of termination of employment before next Monday. But it didn't mention the unpaid wages.
Hundreds of suppliers have rushed from all over China to ask for their money since learning of the bankruptcy last Friday of the Guxi Company, according to Xinmin Evening News.
Not managing to get a satisfactory answer, some of the angry suppliers burst into the warehouse of the company on Friday, trying to take their products out - the situation almost coming to violence.
When stopped by the police, the suppliers sat at the door of the warehouse until evening to prevent their goods being removed by company insiders.
A franchiser of olive oil said his company hadn't received any promised money from the Guxi Company since it began to provide products to the TV shopping company in May. It's owed about 230,000 yuan ($33,600).
"Since all the oil has been sold out, we cannot get any from the warehouse," said the supplier.
A team has been made up to handle the bankruptcy of the company by a former vice manager of the company surnamed Gu.
More than 20 of the suppliers registered their debt with the team last Friday, with a total amount of tens of millions of yuan.
The property owner of Guxi's office, Zhangjiang Property Management Company, said it was owed more than 270,000 yuan in rent and utility fees.
The Guxi Company also owed about 2 million yuan in unpaid wages to its 210 employees.
The entirety of debts is expected to reach 100 million yuan, according to the newspaper.
The sudden closure of the company caused panicked employees to come to the office to demand an explanation and the unpaid wages.
Police allowed them to take only their belongings from the office. A notice said the employees could get notice of termination of employment before next Monday. But it didn't mention the unpaid wages.
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