700 million yuan in arrears! 3,000 suppliers suffered! This Shenzhen seller was repeatedly visited by debt collectors

I believe everyone knows that in September 2020, the cross-border e-commerce giant XX.com was exposed for defaulting on payments to suppliers, and suppliers came to its door to defend their rights.

Now, it has been more than three months since the debt collection storm ended, and there is still no sign of it going away.

According to China Business News, recently, several xx Yiguo suppliers reported to its reporters that xx Yiguo still owes money to many suppliers .

As early as 2018, some netizens exposed the incident of xx Yiguo defaulting on payments to suppliers on a large scale.

In September last year, many suppliers went to the company to defend their rights. It was reported that xx Yiguo's suppliers formed three debt collection groups with a total of nearly 500 people . The amount of debt owed ranged from 50,000 yuan to 500,000 yuan or even higher, involving industries including clothing, furniture, electronic products, etc.

To date, there are as many as 109 complaints about xx Yiguo on Black Cat Complaints, a platform owned by Sina. Most of them are accusations of arrears of payment for goods. The most recent complaint can be traced back to December 30, 2020 .

On the Black Cat complaint platform alone, the highest amount owed was more than 1.54 million yuan, and the lowest was only 1,367 yuan . All of them were overdue for more than half a year, and the longest was over a year and a half. A rough calculation shows that from May last year to now , more than 8 million yuan of debts have not been responded to or dealt with.

A home furnishing supplier of xx Yiguo told reporters that he had business dealings with Shenzhen xx Yiguo since 2016, and xx Yiguo owed them more than 2 million yuan in payment . The payment details sent by the supplier to the reporter showed that the earliest debt owed by xx Yiguo to the home furnishing supplier can be traced back to September 30 , 2019. At that time, the latest payment date promised by Shenzhen xx Yiguo was September 30 , 2019. Now, this debt has been overdue for more than a year . For more than a year, he has repeatedly asked xx Yiguo for the debt but to no avail .

Mr. Li, an employee of a company that deals in electronic products in Shenzhen, said that xx Yiguo had more than 100,000 yuan of unpaid goods, and the payment date was postponed again and again.

A clothing supplier also went to the headquarters of xx Yiguo Company to collect payment on September 15 last year . He said that xx Yiguo owed him a total of 500,000 yuan in payment for goods , and the payment was also postponed to March or April next year.

Wang Hua (pseudonym), a consumer electronics supplier, said that xx Yiguo owed them more than 1 million yuan in order arrears from 2019 to 2020 .

According to an employee of xx.com :

The case of xx.com being accused of defaulting on payments to many suppliers is not an isolated case. In September 2020 , the media exposed xx.com 's default on payments to many suppliers. At the same time, the China Judgment Documents Network shows that xx.com has been involved in many contract disputes recently, all of which are related to defaulting on payments to suppliers.

On June 9, 2020 , the People's Court of Nanshan District, Shenzhen City, Guangdong Province accepted the sales contract dispute case between Ningbo Liming Metal Products Co., Ltd. and xx Yi Gou. Ningbo Liming Metal Products Co., Ltd. filed a lawsuit with the People's Court of Nanshan District, Shenzhen City, Guangdong Province, demanding that xx Yi Gou pay 1.2175 million yuan in purchase price and 243,500 yuan in liquidated damages .

On September 9, 2020 , the case of the sales contract dispute between Ningbo Haisiman Technology Development Co., Ltd. and xx Yiguo was filed in the Ninghai County People's Court of Ningbo City, Zhejiang Province. Ningbo Haisiman Technology Development Co., Ltd. filed a lawsuit with the Ninghai County People's Court, demanding that xx Yiguo pay 929,800 yuan for the goods.

In addition, Zhigu Supply Chain (Shenzhen) Co., Ltd., Dongguan Minghongkai Industrial Co., Ltd., and Shantou Dingyu Toys Technology Co., Ltd. all applied to the court for pre-trial property preservation, requesting the seizure, detention, and freezing of property under the name of xx Yiguo.

Regarding the scale of the debt, a reporter from China Business News once asked the relevant person in charge of the xx Yiguo brand for confirmation. The person in charge only said, " The debt situation is in the process of dynamic communication and processing. We have no information to disclose. "

xx.com was founded in 2007 and was acquired and listed by Cross-Border Link in 2014. In 2017 , it achieved operating income of 11.4 billion yuan and net profit of 710 million yuan , a year-on-year increase of 108.57% . In 2018, its revenue continued to grow to 12.4 billion yuan, but its net profit fell by 65.31% . In 2019, its revenue was 8.5 billion yuan, but its net profit was a loss of 2.65 billion yuan .  

Another supplier told the reporter: " An insider of xx Yiguo told him that xx Yiguo now has more than 1,000 employees, and the number will be reduced to more than 500 by the end of the year (Lunar New Year) . "

Faced with arrears of money owed to many suppliers, xx Yiguo is also trying to save itself. The relevant person in charge of the xx Yiguo brand said that there is indeed a way to extend the repayment time of suppliers. The company is currently actively raising funds in various ways, including the sale of the Global Yiguo Import Division in the second half of 2020.

However, in contrast to the contraction and layoffs of xx.com , the number of security guards under the xx.com building has increased . " There used to be 8 security guards here during the day , but now there are 2 more , " said a security guard. According to him, since the second half of 2020, more and more suppliers have come to xx.com to collect debts.

The epidemic in 2020 brought opportunities for cross-border e-commerce to destock. According to an employee of xx.com , the revenue from destocking was mainly due to the company's repayment of part of its bank loans, which also made it impossible for the company to repay its debts to suppliers.

How to pay back the high amount of money owed to suppliers? This is the problem that xx Yiguo has to face.