Original title: La Chapelle’s last struggle was filed for bankruptcy and liquidation
The former “Chinese version” of Zara may face bankruptcy and liquidation. On November 24, “La Chapelle was filed for bankruptcy and liquidation” was posted on Weibo Hot Search. According to the information disclosed by La Chapelle a few days ago, many creditors submitted applications for bankruptcy and liquidation to the court because La Chapelle was unable to repay debts on time.
From the perspective of industry insiders, as a listed company, La Chapelle’s shell resources still have a certain value, and bankruptcy reorganization is the best choice, not bankruptcy liquidation. However, in the case of many years of negative net assets, La Chapelle faces the risk of being terminated from the listing at the end of the year. Once the shell resources are lost, the reorganization is of little significance. The time left for La Chapelle seems to be running out.
According to the announcement information, La Chapelle’s creditors Jiaxing Chengxin Garment Co., Ltd. (hereinafter referred to as “Jiaxing Chengxin”), Haining Hongshulin Clothing Co., Ltd. (hereinafter referred to as “Mangrove”), Zhejiang Zhongda Xinjia Trading Co., Ltd. (hereinafter referred to as “Mangrove”) (Referred to as “Zhejiang Zhongda”) on November 22nd submitted the “Bankruptcy Application” to the People’s Court of Xinshi District, Urumqi City (hereinafter referred to as the “court”).
Affected by this news, La Chapelle’s stock price fell and its market value shrank significantly. As of November 23, La Chapelle’s closing price was 2.31 yuan per share, a 92.24% drop from the highest point in 2017, and the market value fell to 868 million yuan, evaporating 15 billion yuan.
Behind La Chapelle’s application for bankruptcy and liquidation is the dilemma of his inability to repay his debts. According to the content of the announcement, La Chapelle has contract disputes with Jiaxing Chengxin, Mangrove, and Zhejiang Zhongda. The above-mentioned company believed that La Chapelle could not pay off its due debts, and its assets were insufficient to pay off all debts or obviously lacked solvency, so it filed an application for bankruptcy liquidation of La Chapelle to the court.
Cheng Weixiong, general manager of Shanghai Liangqi Brand Management Co., Ltd., analyzed that La Chapelle’s A+H restructuring was more likely before the epidemic. However, under the influence of the epidemic, La Chapelle’s debt crisis has not been fundamentally alleviated, but increased debt. The burden, although the headquarters is relocated to Urumqi, it is of little practical significance, and bankruptcy and liquidation will be its last resort.
According to Wu Yuechao, the chief lawyer of Beijing Tianchi Juntai Law Firm, La Chapelle, as a listed company, has a certain value in its shell resources, and the possibility of going into bankruptcy and liquidation is relatively small. The reason why creditors filed for bankruptcy and liquidation may be due to the controlling shareholder’s delay in introducing self-rescue measures, which caused creditors to lose patience and be forced to file for bankruptcy and liquidation. Creditors cannot rule out the use of bankruptcy and liquidation methods to force La Chapelle’s controlling shareholders and even the local government to seek solutions to their debts. .
In this regard, the relevant person in charge of La Chapelle told a reporter from Beijing Business Daily that the company has not received any ruling from the court regarding this bankruptcy liquidation. The company will continue to actively communicate with relevant courts, creditors and banks, and strive to reach an agreement on litigation matters and debt resolution as soon as possible, including but not limited to debt restructuring, repayment, and settlement. At the same time, the company will continue to promote Disposal of core assets and striving for external financing to raise debt repayment funds to enhance the company’s ability to continue operations.
Facing a delisting crisis
There are still many uncertainties whether La Chapelle can avoid bankruptcy and liquidation. However, even if La Chapelle can avoid bankruptcy and liquidation and achieve bankruptcy and reorganization, the road ahead will not be so easy.
Looking at the development of La Chapelle in recent years, debt problems have been increasing year by year. According to data, from 2017 to 2020, La Chapelle’s asset-liability ratios were 48.31%, 59.01%, 85.94%, and 119.7%. According to the latest three quarterly reports of La Chapelle, La Chapelle’s current assets total 2.889 billion yuan and total liabilities. 3.861 billion yuan, with a debt-to-asset ratio of 133.63%, the highest since its listing.
At the same time, La Chapelle also faced 144 bank accounts with a frozen amount of 126 million yuan, the company’s 17 subsidiaries were frozen, the amount involved in the execution of the case was about 673 million yuan, and four real estates with a book value of about 1.7 billion yuan were seized, etc. Condition.
It is worth noting that even if La Chapelle can really solve the debt problem and avoid bankruptcy and liquidation, it still faces the risk of being terminated from the listing.
Earlier, the Shanghai Stock Exchange issued an inquiry letter mentioning La Chapelle’s operating performance. According to La Chapelle’s third quarterly report, the company’s net assets are still negative. According to the new delisting regulations, if the company still touches the relevant delisting indicators after disclosing its 2021 annual report, it will be directly terminated from listing. The company is requested to improve its fundamentals as soon as possible in light of its own operating and financial conditions, verify and disclose whether there are other major issues that should not be disclosed, and fully remind the existence of the risk of termination of listing, so as to avoid misleading investors.
Wu Yuechao said that at present La Chapelle urgently needs to find investors to inject capital or assets, otherwise the listing qualification will not be guaranteed. Once such a company loses its qualification as a listing entity, the value of reorganization will be small, so it leaves La Chapelle time. Running out. At the same time, Zhang Huaxin, director of the Zhengzhou Enterprise Reorganization and Reorganization Department of Jingheng, said that La Chapelle is a well-known brand and has a certain market recognition, combined with its assets and resources, and can apply for bankruptcy and reorganization instead of bankruptcy liquidation. However, if the listing is terminated due to continuous negative net assets, it will lose the qualifications, which will affect its reorganization and even its future development and reputation.
In Cheng Weixiong’s view, with the rise of national tides in recent years, La Chapelle’s performance has become more sluggish, stores have been closed sharply, and a large number of online authorizations have become lighter and lighter from the original offline channel advantages. Brand reputation has devalued. With the loss of a large number of users, it is not generally difficult to make a comeback with meager performance contributions.Beijing Commercial Daily reporter Guo Xiujuan Zhang Junhua
What other clothing brands have a hard time
Beijing Commercial Daily News (Reporter Dong Liang Ding Ning) In addition to La Chapelle, there are more than 50 textile and apparel listed companies in the A-share market. Among them, many well-known brands such as Smith Barney Apparel and Wanlima are under pressure in the first three quarters of this year. , 10 companies suffered losses in the first three quarters of this year, and 16 companies experienced a year-on-year decline in performance.
Among them, the company with the highest loss was Souyute, with a loss of 2.128 billion yuan. According to the data, Souyute is mainly engaged in the business of brand apparel operations, supply chain management, brand management and medical supplies. In terms of brand apparel operations, it is mainly engaged in the design and sales of “trend frontline” brand apparel, with products covering men’s wear, women’s wear and accessories.
Smith Barney also suffered serious losses in the first three quarters of this year, with losses second only to Souyute and *ST Laxia. But compared with the same period last year, the loss has narrowed. Financial data shows that in the first three quarters of this year, Smith Barney achieved operating income of approximately 1.933 billion yuan, a year-on-year decrease of 28.15%; the corresponding realized net profit was approximately -125 million yuan, an increase of 82.33% year-on-year. In addition, ST Bailong, *ST Global, Wanlima, ST Start, and Sanfu Outdoor lost approximately 43.42 million yuan, 40.84 million yuan, 36.24 million yuan, 28.99 million yuan, and 16.16 million yuan in the first three quarters of this year.
In addition, according to Wind statistics, in the first three quarters of this year, 16 companies experienced a year-on-year decline in performance, including a number of well-known brands such as Jiumuwang, Gold Rabbi, Red Dragonfly, Youngor, Gelis, and Hongdou shares.
La Chapelle was issued a delisting risk warning and other risk warnings. At present, there are still 6 stocks in the A-share market, including ST Guiren and ST Busen, which have been subject to other risk warnings or delisting risk warnings.
Take ST nobles as an example. ST nobles just realized a turnaround this year and became popular in the early wave of “domestic product fever”. In order to alleviate the pressure on liquidity, ST nobles recently sold assets to “slim down” frequently. For example, on November 9th, ST nobleman announced that it intends to sell part of the company’s land and above-ground buildings to Shengshi (Quanzhou) Investment Co., Ltd. for a price of 210 million yuan. The ST distinguished person said that this move can help the company achieve a large amount of capital withdrawal, which can be used to repay the retained debt and the principal and interest of related debts.
In an interview with a reporter from Beijing Business Daily, Wu Daiqi, CEO of Shenzhen Siqisheng Company, said that the apparel industry is currently showing a phenomenon of brand shrinkage, and there may be several problems hidden here. First, due to the impact of the general environment, the epidemic has triggered a reduction in consumer investment in clothing, shoes and hats, and the clothing industry itself has a certain shrinking status. The second is that many well-known brands have grown and grown stronger than traditional media. At present, the era when brands can be built by selling offline stores + bombing online TV advertisements is gone.
According to independent economist Wang Chikun, from the perspective of the overall market, China’s economy has completed the shift from incremental to stock, and the supply of clothing and other commodities has changed from shortage to surplus, and large consumption such as clothing is already in a highly prosperous stage. At this stage, the industry development dividend disappeared, and the main business growth was weak. Everyone is fighting in a limited stock market, not growing together, but ebb and flow.
It is worth mentioning that on November 24, the share price of the textile and apparel sector rose sharply. Many stocks such as Wanlima and Smith Barney have their daily limit. The trading market showed that as of the close of November 24, the textile and apparel sector rose by 2.37% as a whole. Among them, Wan Lima led the increase, closing up 20% to 8.4 yuan per share.