What Is The Future Of The Final Redemption Of &Nbsp? ITAT At The End Of June?

Hui Ying group told reporters that it would pform ITAT's cooperation based on consignment system into equity cooperation.

Founded in 2004, ITAT reached its peak in early 2008.

At that time, ITAT called itself "nearly 4 billion sales, nearly 1000 stores". It also ranked third in the Hurun retail list, second only to Gome and Suning.

However, in March 2008, with the second hearing failure of ITAT intended to be listed in Hongkong, its founder, the European Union, began to fight for agricultural investment, ITAT

ITAT used to be the object of international investment banks such as Lanshan capital and Morgan Stanley. The euro triangle's "iron triangle" business model has been sought after by the outside world, but why did it collapse rapidly in 2008?

In April 2011, reporters went to Shenzhen to investigate the above ITAT "mystery". According to our reporter's understanding, only a good concept and profit model is not enough for entrepreneurship. Compared with the concept of entrepreneurship, the execution and mentality of entrepreneurs and entrepreneurial teams are more important.

However, as one of the industries with low entry threshold and a high degree of marketization, the garment industry has become one of the industries with serious excess production capacity after decades of development. It is also hard to predict the risk of ITAT's reorganization.

In addition, Hui Ying group told our correspondent that it will pform the cooperation based on ITAT on the basis of the consignment system into a supply chain network based on equity cooperation. For this network, its restructuring plan has not yet been promulgated, and how to advance it and implement its reorganization objectives at the practical level remains to be seen.

Recombinant ITAT tracking

"The problem of ITAT is mainly that the development is advancing too fast, and the management mode and the core team are all having problems."

In April 20th, Li Wei, CEO, who is to take over ITAT's China Hui Ying joint supply chain group (hereinafter referred to as "Hui Ying group"), told the reporter at the office of the 24 floor, Hui Ying group, Guang Shen Hotel.

According to Li Wei, Huying group's reorganization of ITAT required a debt clearing operation before May 30th, and a plan was made in late June. However, the meeting time between creditors and shareholders has not yet been determined, and the scale of debt and debt is still being clarified.

"Now 80% to 90% of suppliers and creditors are actively cooperating with Hui Ying."

Li Wei said.

This also means that the work of restructuring the ITAT has come to an end from the end of December last year.

Statistics show that in December 15, 2010, the Hui Ying group announced the restructuring of ITAT at the grand China Sheraton Hotel in Shenzhen. On the afternoon of the same day, the Hui Ying group held the first supply chain association fellowship and convened a ITAT vendor who had been away for a year, announcing the merger of ITAT.

According to the reorganization information of Hui Ying group, the major shareholders of the merged ITAT include the China Merchants Alliance Group, ITAT, and the 16 former financial institutions such as Morgan Stanley and Lanshan capital, which were converted to ITAT after the conversion to common stock. In addition, ITAT shareholders also include the original supplier of ITAT and the new supply chain partners.

According to our reporter, Hui Ying group was founded in Hongkong in November 2010 by the China Merchants Union Group. As the main shareholder of Hui Ying group, Ma Huijun, chairman of the board of directors of Hui Ying group, was once one of the ten largest suppliers of ITAT, and is also the largest creditor of its suppliers.

"Tragic hero" and the early story of ITAT

Tracing back to the history of ITAT, this is also the history of the founder of his "iron triangle" mode, which is founded by his founder, Europe and China.

This is a tragedy hero.

As early as the last century, in 80s of the last century, the European Union, as the salesperson of Dongsheng textile mill in Huizhou, Guangdong, had already set foot in the garment industry in Shenzhen. In 1990, the European Union established the famous brand of "Golden Shield" suit, and the gold shield group went public on the Hongkong stock exchange in 1998, but it was maliciously acquired because of family disputes.

The European Union of the Golden Shield group has been a veteran of the French brand and the agent of the US brand apple.

His two venture was ITAT.

In 2004, the European Union and some dealer friends gathered 30 million, and began to cash in his "iron triangle" mode on the basis of a shell company called Shenzhen Hui Hai Garments Co., Ltd.

In those days, ITAT opened its first store in Shenzhen's King's building, and it was officially set up.

And his "iron triangle" mode -- "supplier + retail terminal + commercial real estate", is very different from the traditional clothing retail companies.

ITAT does not pay rent and money in advance, but contracts with commercial property, and rents on the basis of monthly sales according to the sales settlement, according to the amount of sales and suppliers.

ITAT provides a platform for selling products, which has both ITAT's own brand (OEM) and its affiliate brand.

This light asset model attracts many middlemen to find suppliers for them.

ITAT quickly opened eight member stores throughout the country, and under the operation of a clear early management team, the eight stores were exemplary in the location, the use of people, and the sales.

From eighth stores to thirtieth stores, ITAT had a financial difficulty.

From the end of 2005 to the beginning of 2006, even to the point where wages could not be paid.

ITAT then issued an internal share to employees and suppliers at 0.177 yuan and 0.15 yuan, and raised 100 million yuan to avoid the financial crisis for the time being.

At the same time, ITAT also began planning to raise funds through listing.

Also in the same year, Lanshan invested $50 million in capital.

Subsequently, Morgan Stanley and Merrill Lynch gradually invested $70 million.

Is venture capital and ITAT listed?

According to our reporter's investigation, behind the rapid growth of performance capital driven by investment banks, the biggest lesson for ITAT in the past is a test of execution after an innovative business model.

"In order to be listed and listed, investment banks are forcing him to make achievements. Of course, on the one hand, he has his own desire for success, and on the one hand is the pressure of VC."

An anonymous senior ITAT told reporters.

The former senior executive recalled that in 2005, ITAT held the annual meeting of East Lake Hotel. The theme at that time was that the company's market value reached 10 billion in 5 years, and it also pulled a banner.

"If the development is normal, the ITAT should be listed from 2009 to 2010. Since then, the EU has begun to expand, demanding that it be listed from 2007 to 2008, and put forward a higher goal."

In management, the goal of the European Union is to require the market value of the company to grow to 100 billion after 5 years of listing.

According to reports, the pressure of performance makes business development out of control.

1000 square meters of small and medium-sized shops have become club type super stores.

The practice is to turn a 1~5 into a department store.

The club for high-end customers, because of its large area, is filled with clothing that has no difference from member stores and ordinary stores, and has even become a supplier of dumping goods.

In the second half of 2008, ITAT opened nearly 1000 stores nationwide.

One-sided pursuit of speed has left the situation out of control.

The unplanned store opening policy keeps a dealer in Jiangxi fresh in mind. When ITAT opened its first store in Ganzhou, Jiangxi, the sales situation was very good. A ten thousand yuan cashmere sweater sold 4 pieces in one day. Seeing that the situation was so good, ITAT ignored the digestion ability of the small city, and opened two branches in a small Ganzhou city.

Soon the two stores closed.

Similar cases occurred in cities such as Sichuan and Zigong.

The expansion speed of rocket causes the management and management level to be out of step with speed.

25 degrees Celsius weather, about 15 degrees Celsius should wear clothes, placed in the most prominent position of the shop, such confusion often appears.

With regard to the above executive ability, "Europe and the United States are bent on their own way". He thinks that these problems can be solved again after listing.

He has changed, not the former European Union state.

The above senior executives said.

In October 2007, the ITAT, which was expanding in a frenzy, was first heard in Hongkong for listing. The first hearing failed because of reports of fraud by the people who were informed by the people of Hongkong.

In March 2008, ITAT accepted the second hearing of the Hongkong stock exchange. At that time, ITAT suffered a lot of negative reports, but no one did a proper explanation. It was a foregone conclusion for the EU to abandon ITAT.

In 2008, when the second hearing failed, the pace of ITAT expansion stopped abruptly, instead of the litigation of employees, suppliers and other creditors. Most shops were partitioned by suppliers until Ma Huijun announced the restructuring of ITAT's equity and debt in December 2010.

Possible future of new ITAT

Ma Huijun, the successor of the European Union, is a "black horse" of the 80's clothing industry.

In 2002, Ma Huijun started from scratch in the white horse clothing market in Shenzhen.

30 shops are opened in one year.

ITAT's "iron triangle" mode, which Ma Huijun deeply recognized, boldly boldly tied up with ITAT and became the biggest supplier of ITAT.

ITAT owed $200 million to Ma Huijun.

During the ITAT litigation crisis, Ma Huijun took dozens of ITAT shops and set up the "China supplier union group Limited by Share Ltd", and began a journey to ITAT integration.

The new business after the merger of ITAT is the Hui Ying group.

In a press conference announcing the merger and reorganization of ITAT, Ma Huijun said that the ITAT model is feasible and in some ways successful. It is unfair to call it failure, and failure is the more appropriate evaluation of ITAT.

Just as Mr van ITAT's approval, extension and development of PPG's supply chain and profit model, Ma Huijun also intends to pform and extend the model.

Li Wei told our reporter that ITAT's previous cooperation mode of suppliers, retail terminals and commercial real estate is loose, based on the cooperation of the sales agency system.

What the Hui Ying group wants to build is a strategic cooperative supply chain network based on close equity cooperation.

Li Wei also told our reporter that the large debts of the former ITAT group will be restructured in the form of debt to equity swap.

Ma Huijun also intends to expand the supply chain platform of Hui Ying group to home, catering, consumption and other industries. The future Hui Ying group is hard to say which industry belongs to the clothing industry, but a supply chain group based on information technology.

Even so, just like the ITAT of the European Union era, if the executive level is lacking, the value of the platform will still be limited, and the equity relationship may not guarantee the mutual benefit of the two sides, which is also the key to the success of the new mode.

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