Deflation Fallout: East Asia's Largest Textile Company Goes Bust; 80% of Companies Face Bankruptcy

The firm in question: Jiangsu Baolijia Textile Co., Ltd.
Baolijia Textile Co., Ltd. is a new large-scale private enterprise, which was established from 2002 with total investment of RMB 800 million. It covers an area of 500mu and 140,000 sq.m. as building area, with totaled 4000 employees. Its design production scale is 300,000 spindles, and its annual sales amount is RMB 1.3 billion. The company is divided into Suzhou Baolijia Textile Co., Ltd. and Jiangsu Baolijia Textile Co., Ltd.

From the iFeng headline summary:
East China's largest textile large - Baolijia group discontinued message, causing the industry in an uproar, marvel!

Today, according to Hongze promote media message: Because Baolijia of bankruptcy, to the government and the general staff Baolijia brought great losses, now the county government will be to sell stock Baolijia way to pay compensation Employees loss!

Because Baolijia of bankruptcy, to the government and the majority of employees Baolijia brought great losses, the county government will now stock products to sell Baolijia way to pay damages of staff! June wages plans issued before August 10!

Text of Chairman's letter:
Baolijia of their staff and the community of friends:

Today Baolijia encountered unprecedented disaster, let us suffer, frightened. There are some staff wages and benefits did not get our hands on, there are no friends in the community loan is also clear, here I express my sincere apology. The following is the basic situation caused by these reasons and my views:

1, since last year, Baolijia Group are various financial institutions intensive pressure recovering loans of 207 million, equipment rental fee of 100 million yuan, cash flow of only 300 million yuan.

2, significant amounts Lu'an, Chuzhou Development Zone two investment agreements did not materialize, which Lu'an Economic and Technological Development Zone Investment Agreement commitments Lu'an Baolijia 420 million yuan project to solve the credit funds, has invested its seventh year, credit companies to get only 20 million yuan Lu'an agricultural businesses, is just a fraction of protocol commitments. Therefore reasons, resulting in insufficient Baolijia Lu'an company operating rates, resulting in annual losses, it can not honor the agreement of the Zone tax convention. Chuzhou Development Zone is also committed to addressing the credit for each completed a vehicle between 60 million yuan last year, four workshops have been completed and put into production, should be for enterprises to solve the credit funds 240 million yuan, the actual row in Chuzhou now only 10 million yuan loans, originally Chuzhou 20 million yuan loans ICBC also by 18 June this year, all the income loans.

3, in order to maintain business livelihood, strive to borrow from private social network circle 73 million yuan, and now the resources are all withered, but also saddled one debt.

4, received loans of financial institutions uncontrolled pressure loans, resulting in a serious shortage of companies operating rate, losses, until inability dimension count today.

5, the current storage materials company Lu'an enough wages and benefits paid to its employees, Chuzhou too few stocks, need to rely on government to solve problems. Hongze, Taicang government also needs to solve part of the problem, thus to trouble the employees and the community to bring a lot of understanding with me.

6, I also hope that all financial institutions to understand the sufferings of the enterprise, the overall situation, do not receive the loan uncontrolled pressure loans, hurt people hurt themselves also equal, and finally lose-lose. Also we hope that the integrity of the investment over the zone can not be invested in companies on what is the matter, all of the responsibility on the corporate body. A Baolijia go down is not terrible, if many companies have experienced the same fate Baolijia, will social stability will have a tremendous impact.

7, because I am the reason we lost confidence in harm Baolijia, I hope the employees and the community do not be discouraged, do not worry, even if I have not the ability to run this business, and I believe that the future will be Baolijia the ability to better boss to run well this business, because I lack the ability to control the business, resulting in Baolijia misfortune to all sectors of society friends and employees the hassle and confusion expressed deep regret!

I hope everyone in the hot summer, eliminate cool down, take a break, waiting for good news. If you have the opportunity to also, and everyone together, I will redouble our efforts to work, but also hope that we can continue to support me.

I believe the government can coordinate and deal with these issues in front, and finally I wish you peace, proceeds smoothly!

Baolijia Ge Fuchun

What's perhaps even more amazing that this letter, published in a Zhejiang newspaper, is the two paragraph commentary that follows it, which includes a claim that 80% of private businesses are at the edge of bankruptcy.
Every employee should thank your boss, especially the last two years of poor industry as a whole. You may never know, when you are playing phone desertion, your boss is battered; you may never know how much you plan to take the salary that when your boss is down on an IOU signed. China's private bosses, to solve the employment of more than 80% of the Chinese population. But China's private bosses, more than 80 percent of enterprises facing collapse risk, legal risk. Typhoon cover when the ship, the captain must be the most unlucky own - crew can escape, but the captain could not bear his boat!

Please take good care of your boss, he really doesn't have it easy!

iFeng: 华东最大的纺织企业破产 董事长叹民企老板不容易

No comments:

Post a Comment