The "Luo Sheng Men" Crisis In The Cable Shoe Industry Staged The Boss'S Run.

Many clothing business owners were lost.

Boss Suo Li runs "Luo Sheng men": Clothing industry in Jinjiang Crisis spread downstream

Ultrasonic, a German listed company in Fujian, staged a "Luo Sheng men" running on the boss's road. First, the company called CEO and COO "father son file" to take the money to go on the road, and then the main character appeared on the road, saying that the news was not true. It is reported that the relevant departments have been involved in the investigation, and there will be an open briefing shortly.

Although it is hard to say who is right and who is right, it is an indisputable fact that Suo shoe industry is encountering fund problems at present. This is also the collective predicament faced by tens of millions of clothing upstream enterprises in Jinjiang, Fujian.

CEO was expelled from CFO?

In September 16th, Fujian's SuoLi shoes announced to the outside world on its international official website that it has been unable to reach the top two executives of CEO, Wu Qingyong and COO, since last weekend.

The statement said the chief financial officer (CFO) Chi Kwong Clifford Chan told the board of supervisors of the company that two of the missing persons had left their home and their whereabouts were unknown. The accounting department found that most of the company's cash in mainland China and Hongkong had been spanferred beyond the scope of the company's influence.

Just last month, Ding Hui, chairman of Fujian's Limited by Share Ltd, lost 2 billion yuan in debt and made a very bad impact on Fujian businessmen. Now the loss of CEO and COO of cable shoes has been seen as a real collapse of the real economy.

According to the announcement of Suo Li company, the company has only 6 digits of cash left. CFO is consulting with the board of directors, local government and business partners to try to find a solution. Affected by this news, Frankfurt's listed shares of Suo Li shoes fell 75% in September 16th. The news soon spread to the country, and a wave of creditors came to ask for debts, while the employees of Suo Li even began to remove the company's goods.

In September 18th, the German official website of Suo Li announced that CEO Wu Qingyong and COO Wu Minghong would be relieved of their duties, and CFO, who left the plan, would continue to stay in office, so as to "support the company to clarify the status quo".

But only 4 days later, things changed dramatically. Wu Qingyong showed up in Xiamen, explaining the situation to his friends in quotient, claiming that he had no money to run, and even claimed that he had encountered a professional black hand plot. Later, a video of Wu Qingyong's appearance in Jinjiang was quietly put on the Internet. His two son Wu Mingjun (deputy general manager of the company) showed himself "innocence".

According to "China business newspaper" reporter, after the incident Wu Qing Yong Lu Yida, Deputy Secretary General of the Quanzhou chamber of Commerce in Xiamen, has been authorized to respond to it. The latter told our reporter that the matter stems from the internal struggle between company executives, while CFO dismissed both CEO and COO at the same time. "I am afraid it is difficult to find second cases at all times and in all countries."

There are loopholes.

According to Wu Qingyong's statement, because of the recent problems in the company's capital chain, which caused great pressure on him, he took a vacation to Philippines to see a doctor, and he also visited business old friends to find countermeasures. But in the process of going abroad, "I did not know that I lost my cell phone" at the time, so that partners and company executives could not get in touch with each other, which led to the illusion of losing contact.

At the same time, in September 22nd, a statement by Suo Li pointed out that the former CEO who had lost contact with the company on the weekend contacted the company CFO and the middleman in Germany, claiming that he would return to the company and "return the funds".

If there is no spanfer of assets, where is the "return of funds"? Wu Qingyong's Self Justification seems to have other doubts. Lu Yida responded by saying that the management level of Suo Li company was low, and he did not pay attention to diction in his external speeches, which caused doubts to the outside world. In fact, the public security departments in Jinjiang have been involved in the investigation and will soon be able to give the public an official result.

Another main character in this incident, CFO telephone of Suo Li company has not been connected.

At present, the matter of "running away" remains to be verified, and the fact that it did not really cause a great disturbance is closely related to the recent events. In August 5th, media reports reported that the boss of Quanzhou men's wear brand had been lost to the boss, while the Singapore listed company and the local clothing giant alligator were also held up by employees for arrears of wages.

The most widely watched case occurred at the end of 7, and the company had lost contact with the company for half a year. The company has reported it to the Hongkong Special Administrative Region police on 23 July. The reason for the boss's leaving is suspected of being related to the huge amount of funds spent before the listing, and the capital chain is on the verge of breaking. In the announcement, the board of directors has taken measures to remove Ding Hui from all positions in the company.

"No matter what happens to the company, the boss is running the wrong way." Lu Yida pointed out.

Collective dilemma

In September 24th, Lu Yi Da and other members of the Quanzhou chamber of Commerce in Xiamen coordinated with the relevant government departments in Jinjiang to deal with the matter. He said that from the recent two days of the survey results, cable force in the capital chain did appear problems. The consensus between the chamber of Commerce and the government is "such a problem (enterprise bankruptcy or boss running away), even if not today, tomorrow or the day after tomorrow."

Fujian Jinjiang has long been a domestic Clothing and shoes The industry's base camp, Anta, XTEP, seven wolves, Qipai, Jin Ba, Li Lang, del Hui and other familiar brands are from here. After more than 30 years of development, Jinjiang has gradually matured in the upstream and downstream garments, and more fabric factories and OEM factories are expanding here. The protagonist of the event was OEM and Anta and XTEP.

After the news of Wu Qingyong's "run on the road" came out, Anta and XTEP quickly issued a statement and their relationship. Tre said he had no cooperation with Suo Li, while Anta said it had concluded cooperation 5 years ago.

"Unlike Anta, XTEP and other market predicament, OEM manufacturers rely more on the weather." Ma Gang, an apparel industry observer, said that the prosperity of the market, the willingness of downstream brands, the fluctuation of fabric and labor costs all may determine the survival of a OEM manufacturer.

Since 2010, domestic sports brands and men's clothing have fallen into the predicament of declining market demand and high inventory. Every brand is shrinking the front to seek profit margins. It was not until the first half of 2014 that sports brands showed signs of recovery, but the sales of the "Jinjiang Department" clothing industry were no longer comparable to those of the peak of the industry.

"Under the condition of too many people, it is inevitable that a group of enterprises with insufficient competitiveness will be eliminated." Jinjiang clothing industry said that the impact of the shrinking demand for the downstream has long been spanmitted to the apparel industry. The other shoe material export business of Suo has been in a state of depression since 2008.

Another shift comes from the adjustment of production strategies of Anta, XTEP and other brands. Ma Gang said that looking at the announcements of various listed companies can find that these brands have been increasing the proportion of self factory orders in the past two years, and adjust their production rhythm through their own capacity to avoid the occurrence of high inventories. This is another major blow to the traditional OEM manufacturers.

But this kind of spanformation has not been effective. "Cable force is in Outdoor shoes The brand exploration has made the same mistake as most Chinese clothing enterprises, that is, brand = high price. Ma Gang said that according to its understanding, the market price of cable outdoor shoes is around 1000 yuan, which is superior to some outdoor famous brands. A price of 1000 yuan can be sold by 70 percent off when it is actually sold. This brand of Jinjiang has been using the price strategy for more than 20 years, and it has long been out of tune with the market.

Lu Yi Da also said that the government and the chamber of Commerce have found that the plight of Suo Li is not a case of two enterprises. It may be a common problem faced by 20 or 30 enterprises. "Limited by the bottleneck of corporate management and professional talents, the spanformation of enterprises such as Suo Li is much more difficult than expected."