Gearbest is one of the most popular cross-border eCommerce platforms but now the platform’s future seems shaky as its parent company Shenzhen Globalegrow E-Commerce Co. is facing bankruptcy, claims a new report from China.
Currently, the case filed in Guangdong Province court is categorized as a bankruptcy review and the applicant is the Shenzhen Nanshan Sub-branch of Industrial and Commercial Bank of China Co., Ltd., while the respondent is Shenzhen Globalegrow E-Commerce Co., Ltd.
Globalegrow says that the company has not received any legal documents from the Shenzhen Intermediate People’s Court. It also added that the company is actively communicating and negotiating with the Nanshan Branch of Industrial and Commercial Bank of China Co. Ltd and is also working to raise new funds using all possible ways. It hopes to reach a settlement with the bank.
Earlier this year, in the month of March, it sold its wholly-owned subsidiary Patoxun for 2.2 billion yuan with brands like MPOW to a group of companies but it seems that the capital raised wasn’t enough. With the sale, companies like Xiaomi, Shunwei, CDH, Quantum Yuedong, Xiyin International, and others became new investors in the brand.
A month later, ZAFUL, another subsidiary of Globalegrow, also officially started operating independently. In May, Xu Jiadong, Chairman and General Manager of the company resigned, citing personal reasons. Along with him, Supervisors Li Jie and Zhou Chunyan as well as Head of Internal Audio Wanf Xiaoyu also resigned from the company.
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