Why is Shangshu Yonghui Supermarket facing bankruptcy?

Shangshu Yonghui supermarket was established on December 20, 2013, with a registered capital of 100 million yuan, according to the company's data, the current shareholding structure of Shangshu Yonghui supermarket is: Shanghai Shangshu agricultural and sideline products **** holding, Yonghui supermarket holdings, Shanghai Lanyun Enterprise Development Partnership, according to the company's equity penetration data, it can be seen that the major shareholder Shanghai Shangshu agricultural and sideline products **** and Shanghai Vegetable Group, Shanghai Guosheng Group, Shanghai City Investment Group, Shanghai Jiushi Group and Bright Food Group are related.

The ultimate beneficiary of the Group is the Shanghai State-owned Assets Supervision and Administration Commission

Shanghai Vegetable Yonghui Supermarket originally wanted to use the shareholder structure to achieve resource complementarity, but after the company was established, Shanghai Vegetable Group did not provide much help。Yonghui Supermarket, which has the advantage of the first chain of fresh food and is good at management, no longer participates in the operation of Shanghai Vegetable Yonghui, and other shareholders lack retail genes, and a series of problems such as who makes decisions and who is responsible cannot be solved, and as a result, the complex shareholding structure has become the main constraint to the development of Yonghui.

The eventual bankruptcy of all companies erupts from the financial level, but the beginning of most companies has already decided to end

Although Shangshu Yonghui Supermarket has a very strong team of shareholders at the beginning of its establishment, this is by no means a decisive factor in determining the company's success。The decisive factor is whether the shareholder team's co-investment in the company has a highly consistent value pursuit and concept, whether it is centered on resource integration or clearly creates customer value, from a business point of view, the business positioning and basic operation of Shangshu Yonghui Supermarket lack a clear and stable idea since its establishment.

The reason behind this is precisely the lack of clarity in the company's internal governance structure and the problem of chaotic management。The main shareholder of Yonghui's absolute control should be held liable for the bankruptcy of Shangshu Yonghui Supermarket, for Yonghui Supermarket, the bankruptcy liquidation application of Shangshu Yonghui Supermarket is equivalent to getting rid of the burden, as the second largest shareholder, Yonghui Supermarket does not have the right to control Shangshu Yonghui Supermarket, which is equivalent to an investment, for Yonghui Supermarket, its bankruptcy liquidation reduces long-term investment losses, is a way to reduce the burden.

In fact, the main reason is that the company itself can't make money, and it also owes many employees and various developers funds, resulting in a lot of losses on the books.

This is because this Shangshu Yonghui supermarket is facing bankruptcy because it owes many merchants and does not repay these payments in time, so it is sued, and the amount involved is also very significant, so it is facing bankruptcy.

There was a problem in the capital chain, and the operation was not good, and the arrears of employees and businessmen were owed, and they were unable to repay before going bankrupt.

Because Yonghui Supermarket has not been operating well in recent years, and the business model is too simple and conservative, Yonghui Supermarket will go bankrupt.

It is because the company is now facing bankruptcy because it has negative assets and is not able to pay off its debts, and owes many employees wages.

Management problems, the relationship between generations is too strong, many high-level executives do not grasp sales only know to suck blood from the best businessmen, an enterprise only seeks refinement and does not seek speed, to move forward steadily, the expansion is too big to control, do not only shout slogans all day long, do not do practical things.

Yonghui Supermarket. It's listed. Yonghui Supermarket is one of the top 500 enterprises in China, a state-level "circulation" and "agricultural industrialization" double leading enterprise, won the "China Famous Trademark, listed on the main board of Shanghai.

601933）。It was awarded the "National Advanced Employment Enterprise" and the honorary title of "National May Day Labor Award".

Extended information: 1. Listing.

Listing is a market term. Listing in the narrow sense is an initial public offering.

Initial Public Offerings (IPO) refers to the process of an initial public offering by an enterprise to investors through an exchange in order to raise funds for the development of the enterprise. When a large number of investors subscribe for new shares, they need to be allocated by lottery**, also known as new shares, and the subscribed investors expect to sell ** higher than the subscription price. In the Chinese environment, listings are divided into the Shanghai ** Stock Exchange, which is the territory of Chinese companies.

Listed on the Shenzhen ** Stock Exchange; Chinese companies go directly to non-Chinese mainland ** exchanges (such as Hong Kong ** exchanges.

New York Stock Exchange, NASDAQ Exchange, London Stock Exchange, etc.) and Chinese companies indirectly set up offshore companies overseas and list on overseas ** exchanges (red chips) in the name of the offshore company.

Second, the advantages of listing.

1 .Improve the financial situation.

The funds obtained through the ** listing do not have to be repaid within a certain period of time, on the other hand, these funds can immediately improve the capital structure of the company.

This allows the company to take out loans with lower interest rates. In addition, if the IPO is very successful and the trend in the market is very strong in the future, then the company may be able to issue more shares in the future.

2 .Use ** to acquire other companies.

1) Listed companies usually buy other companies in the form of their ** (rather than paying cash). If your company is publicly traded on **, then shareholders of other companies will be happy to accept yours in lieu of cash when ** shares. **Market.

The frequent buying and selling of the company provides flexibility to these shareholders. They can easily sell ** when needed, or use ** as collateral to borrow money.

2) The market will also make it much easier to estimate shares. If your company is a private company, then you must value it yourself and expect the buyer to agree with your estimate; If they don't agree, you'll have to bargain to find a "fair" price that is acceptable to both parties, which is likely to be lower than your company's actual value. However, if it is publicly traded, the value of the company is determined by the market.

<> Shanghai Shangshu Yonghui Fresh Food **** was jointly funded and established on December 20, 2013 by Shanghai Guosheng Group, Shanghai Vegetable Group, Yonghui Supermarket, Dingzheng Huihui Jicong Investment, Morgan Stanley and Shanghai Lanshao.

With the help of the strong trading market of the shareholder Shanghai Vegetable Group and the direct and clear code mining advantages of the national base of Yonghui Supermarket, Shangshu Yonghui provides strong commodity resources and first-class image for operation, and actively contributes to the supply and price stability of the "vegetable basket" project.

First of all, it needs to be clear that Shangshu Yonghui and Yonghui Supermarket are not too directly related, because they are just different companies. Yonghui Supermarket is one of the investors of Shangshu Yonghui, and Yonghui Supermarket occupies the second place in the investment relationship of Shangshu Yonghui, that is, Yonghui Supermarket is the second largest shareholder of Shangshu Yonghui. For this incident, I will give a detailed answer from the following points.

1. What is the news about the bankruptcy and liquidation of Shangshu Yonghui?

Second, about Yonghui Supermarket's investment in Shangshu Yonghui.

Third, Shangshu Yonghui made Yonghui Supermarket miserable.

It is an affiliated company of Yonghui Supermarket, a subsidiary of Yonghui Supermarket, and Yonghui Supermarket has a stake in Shangshu Yonghui.

Shangshu Yonghui is actually a shareholding company of Yonghui Supermarket, which does not belong to the line of Yonghui Supermarket, and the bankruptcy of Shangshu Yonghui has no impact on Yonghui Supermarket's earnings.

Yonghui Supermarket is a shareholder of Shangshu Yonghui. For the bankruptcy liquidation of vegetables. Yonghui Supermarket responded that it will not affect the investment income in 2020 and beyond.

1. Shangshu Yonghui applied for bankruptcy liquidation. Yonghui Supermarket started from the fresh business, and then became stronger and stronger, opened more and more stores, and the core business development was not bad, but recently Yonghui Supermarket has encountered troubles, and Yonghui Supermarket has filed for bankruptcy liquidation. According to the announcement of Yonghui Supermarket, the company has received a notice from Shangshu Yonghui, a shareholding company, and the Shanghai No. 3 Intermediate People's Court has ruled to accept the bankruptcy liquidation application of Shangshu Yonghui.

At present, the total debt of Shangshu Yonghui is 100 million yuan.

Second, the pressure of Yonghui comes from the impact of e-commerce. E-commerce has developed very rapidly in recent years, especially fresh e-commerce, which has developed rapidly, and many new retail models have entered people's daily life, but compared with fresh e-commerce, Shangshu Yonghui is still based on the traditional model, and many physical stores in the retail industry have been greatly impacted by the impact of the epidemic this year. New business opportunities are being explored, so the traditional e-commerce model is bound to be eliminated.

Third, the community** poses a challenge to the physical supermarket. In addition to the development of online e-commerce, the community** has also entered people's attention, due to the impact of the epidemic this year, many fresh e-commerce companies have realized the importance of community shopping, and they are more inclined to bring together consumers in the community to form a new way of shopping in the community**. That's why retail entities like Yonghui will be hit on a large scale.

E-commerce just does not have a benign development, it is a deformed development, ultra-low **, fakes, and so on! Now people look at it too shortly, you see that online shopping is cheap now, I ask you to buy a house, can you afford to buy it now, in addition to dead wages, what other individual transactions can still make money in the current situation where the real economy is crushed by the e-commerce economy. In the past, the real economy was prosperous, all walks of life were prosperous, ordinary people had money, they could make money, they were willing to spend money to consume, and the rent was high and they made money, and they rarely heard of it because the rent was high and they couldn't do it, as long as you want to do it yourself, what kind of physical store, you can buy a house in 5-10 years!

Now the people say that the housing prices are high, because the people can't make money, and the deformed e-commerce without benign development has completely deprived ordinary people of the opportunity to live a small rich life through their own efforts, destroying the road of benign development of social and people's livelihood.

This is indeed related to the development of online e-commerce, because today's people will choose this way of buying things online for convenience.

Personally, I believe that the development of e-commerce has seriously impacted the physical retail industry, so the bankruptcy of Yonghui Supermarket is inseparable from e-commerce.

I think of course it has a lot to do with it, after all, some online industries and offline industries are in competition, and the better online industry will affect the business of the offline industry.

I think it has a certain relationship with online e-commerce, because now many people will compare supermarkets and online **, and if online ** is cheap, they will choose not to buy in supermarkets, resulting in a significant decline in supermarket sales.

On December 8, Yonghui Supermarket announced that its shareholding company, Shanghai Shangshu Yonghui Fresh Food **** (hereinafter referred to as "Shangshu Yonghui"), had been accepted by the court. As of October 31, 2020, the total liabilities of Shangshu Yonghui100 million yuan

According to the announcement, Wu Jin and Shangshu Yonghui applied for bankruptcy liquidation to the Shanghai No. 3 Intermediate People's Court on the grounds that they could not pay off their due debts and obviously lacked solvency. As of October 31, 2020, Shangshu Yonghui had book assets totaling 100 million yuan, liabilities totaling 100 million yuan, and owners' equity totaling 100 million yuan.

The company has triggered a number of lawsuits due to arrears of commercial payments, including 31 commercial lawsuits that have been adjudicated or mediated, involving a total of 28.44 million yuan in the subject matter of the lawsuit; 36 pending lawsuits, involving a subject amount of 39.46 million yuan; There were 8 cases involving compulsory enforcement.

There is a common problem in society, that is, everyone wants to make a lot of money, everyone starts a business, and they want to do it very big, and now everyone on the streets and alleys will talk about some IPOs, such as opening a company by themselves, if they are not listed, they are embarrassed to say that they are opening a company. For Shangshu Yonghui's application for liquidation and bankruptcy this time, their company has caused a lot of lawsuits, including arrears to many ** merchants, as well as arrears of employees' wages, and even unable to pay investors' income, I will give detailed answers from the following points.

1. What's going on with this news event?

When many people heard that Shangshu Yonghui was bankrupt, they thought that Yonghui Supermarket was bankrupt. In fact, Shangshu Yonghui and Yonghui Supermarket are two different companies, Yonghui Supermarket is a listed company, now has a market value of 70 billion, and Yonghui Supermarket is also one of the main investment companies of Shangshu Yonghui, he has a lot of shares in Shangshu Yonghui, is the second largest shareholder of listed Yonghui. This time, Shangshu Yonghui was unable to pay for the goods due to the rupture of the capital chain due to poor management, and was also unable to repay the loan, which led to a number of lawsuits at the same time, which was also the fuse that triggered the bankruptcy and liquidation of Shangshu Yonghui.

2. What lawsuits have been caused by Shangshu Yonghui?

At present, there are more than 100 lawsuits known to Shangshu Yonghui, most of which are unable to repay the loans, and at the same time, they cannot pay the goods to the top merchants, and even pay more than 700 employees. For such a desperate enterprise, it is inevitable that they will operate like this, because their business strategy is too aggressive. <>

3. What is my personal opinion on this matter?

For cases like Shangshu Yonghui, not only harmed themselves, but also harmed many investors and the market, and it is also a major damage to the market. <>