One of the largest factories went bankrupt in China
One of China's largest footwear companies, Xinou, announced on November 19, 2008 that it would close production. The reason for the ruin of the factory with more than 20 years of history was not so much the financial crisis as the actions of the CEO, Mr. Shi Janow.
He first used the bank loan received by the company for the development of production for large, but not successful investments in real estate, and then tried to recover the lost money by playing in a casino in Macau, where he lost a few tens of millions of yuan from the company's funds. Then he disappeared, and the factory was forced to plead bankrupt.
“Unfortunately, it is not uncommon for leaders of Chinese enterprises to misuse company money, as a rule, credit funds. In a similar situation, there are not only enterprises oriented towards the local market, but also companies cooperating with foreign partners, including from Russia. And with the aggravation of the financial crisis, there are more and more such cases. Therefore, those who export goods from China should be especially careful not to fall prey to unscrupulous Chinese entrepreneurs today, ”says Evgeny Kolesov, CEO of Optim Consult (Guangzhou, China), a member company of the China Consumer Goods Manufacturers Association.
Certificate of the shoe factory. Xinou is the first and largest shoe factory in Wenzhou, one of the three largest shoe manufacturing centers in mainland China. The company's products under the Xinou brand were exported to Russia, Ukraine, France, Italy, Spain, the Netherlands and Germany, where it was in stable demand. In addition, shoes from the factory could be purchased online. Prior to bankruptcy, the company was a member of the Wenzhou Chamber of Commerce Economic and Technological Development.
One of China's largest footwear companies, Xinou, announced on November 19, 2008 that it was closing production. The reason for the ruin of a factory with more than 20 years of history ...
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