Title: Cluster Chebao, with over 100 stores, files for bankruptcy causing sudden shock to employees and partners
Recently, an abrupt announcement was circulated in WeChat Moments addressed to all employees and partners of Guangzhou Cluster Chebao Digital Technology Co., Ltd. (hereinafter referred to as “Cluster Chebao”). In the “Notice”, Cluster Chebao’s founder and chairman Gao Cluster announced that following the resolution of the company’s shareholders’ meeting, Cluster Chebao will file for bankruptcy with immediate effect.
This sudden announcement has left employees and partners in shock. An employee of Cluster Chebao mentioned that the notice of the company’s bankruptcy came very suddenly, and they are in the process of applying for arbitration to recover unpaid wages from the company. Furthermore, an insider close to Cluster Chebao revealed that the company, which is about to file for bankruptcy, has debts of more than 100 million yuan.
The situation is affecting the operations of Cluster Chebao’s stores as well. Notices posted by directly-operated and franchise stores in Guangzhou indicate that the stores will stop picking up cars, with the stores citing company funding issues.
The founder of Cluster Chebao, Gao Cluster, spoke about the company’s struggles in a report released in July 2023, stating that the sudden three-year epidemic and the impact of the domestic and foreign economic environment have made the living environment of Cluster Chebao worse. Gao Cluster and his team have made significant personal and financial sacrifices to save the company, but unfortunately, the efforts were not enough.
In addition to internal challenges, the automotive aftermarket industry is facing greater competition, which has contributed to Cluster Chebao’s bankruptcy. With intensified competition, shrinking demand for after-sales services for traditional fuel vehicles, and the limited opportunities in the new energy vehicle market, Cluster Chebao found it difficult to sustain its operations.
The bankruptcy of Cluster Chebao serves as a reminder of the challenges faced by businesses in the automotive aftermarket industry, and will have implications for employees, partners, and consumers. It also highlights the need for businesses to adapt to changing market trends and consumer preferences.
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