The debt unpaid crisis has arisen again, and another cross-border giant is suspected to be shutting down!

The debt unpaid crisis has arisen again, and another cross-border giant is suspected to be shutting down!
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Looking back at 2021, sellers have witnessed unprecedented changes in the industry. A number of big sellers have suffered heavy losses under the ravages of the account blocking wave, and some platform giants that once dominated various overseas markets have collapsed.
 
Whether it was Vova's sudden collapse, running away with defaulted payments to sellers, or the independent site's big seller Gearbest's mysterious "disappearances" and interrupted operations, many sellers were shocked, angry, and sighing.
 
And now that 2022 has just begun, another well-known cross-border e-commerce platform has suddenly died.
 
It is learned that recently, the Middle Eastern e-commerce platform Jollychic suddenly failed to log in, and the official website interface was blank when it was opened . For a while, rumors that Jollychic might go bankrupt were rampant.
 
 
At 10:30 this morning, a search found that the Jollychic official website can be accessed normally, but when clicking on any category or product, it shows "no search results" . It is currently impossible to confirm whether the rumors of Jollychic's bankruptcy are true.
 
 
It is reported that Jollychic is an e-commerce platform affiliated to Zhejiang cross-border e-commerce company Zhiyu, focusing on the Middle East market and adopting a cross-border B2B2C model. Its main categories of business include clothing, maternal and child products, 3C, and home appliances.
 
 
Since its establishment in 2015, Jollychic has developed rapidly and occupied the Middle East market, covering 80% of the region. Among shopping apps in the Middle East, Jollychic has always been among the top 10 and has even ranked first many times.
 
However, this once-powerful Middle Eastern e-commerce giant was plagued by negative news in 2021, and was repeatedly exposed for not shipping goods or collecting payments, and for defaulting on payments to suppliers.
 
In late July last year, Zhiyu was blocked by suppliers because it owed suppliers hundreds of millions of dollars in payment, which caused an uproar. Countless debt collectors complained bitterly about Zhiyu's unfair terms. The millions of dollars in payment were settled at a 10% discount, and only one-tenth of them were received in the end. There were also suppliers who had not been able to recover their payments for nearly two years, and they were almost bankrupt.

Searching on major forums, we can see that most of the information related to Zhiyu is about debt collection:
"I didn't ship the goods in November 2020, and this company stopped paying me in May 2020. Now it's May 2021, and I haven't seen a penny. I guess they don't want to pay me anymore."
"I still haven't received the money I paid for the goods 20 years ago, and I can't get in touch with them no matter how hard I try."
"How long will it take for Zhiyu to settle the payments from suppliers? They have already paid in installments but they still haven't settled on time?"
 
 
One supplier stated that after he sued the other party, the other party still refused to acknowledge the corresponding amount of payment and the purchase contract, and even privately changed the supplier's backend data. Such a passive and evasive attitude has also meant that Zhiyu's debt dispute has not been resolved to date.

We have set up a JollyChic closure discussion group for everyone . Sellers are welcome to join the group to discuss~

▲ Scan the QR code above to join the group

Comprehensively considering all aspects, Zhiyu began to have funding problems as early as 2019. This Middle Eastern unicorn has occupied the Middle East market in just two years. However, behind the rapid development, many drawbacks have also been exposed. The rapid expansion speed, coupled with the impact of the epidemic and the attack from competitors, has continuously increased its financial pressure and finally entered a bottleneck period.
 
At present, Jollychic’s official website can still be logged in normally, but the products cannot be accessed. Whether it will really follow the footsteps of Gearbest and Vova is just speculation by the sellers.



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