Caixin
Aug 02, 2022 06:39 PM
BUSINESS

Chinese Online Grocer Missfresh Denies It Is Liquidating

What’s new: Nasdaq-listed fresh food delivery platform Missfresh Ltd. has denied that it will liquidate and refund customers and suppliers, after the firm stopped paying most of its staff and shuttered its core instant-delivery retail business last week.

On Monday, a notice circulated online saying Missfresh did not have enough cash to continue operating but would liquidate assets and repay liabilities before closing shop. It appeared to be signed by Missfresh, but the company told Caixin that it had not issued the notice and that some of its businesses continued to operate.

Missfresh is thought to owe its suppliers more than 1 billion yuan ($148 million) in unpaid debts.

Its stock traded down 13.12% on Monday, closing at $0.10 apiece.

The context: Missfresh has struggled to find much-needed new investment this year. Flaws in its management and business model have meant high costs and protracted losses for the company.

Last week, Missfresh suddenly suspended most of its staff’s work and salary payments. Many employees complained that the company had not paid salaries and social insurance premiums for the past two months.

Multiple notices about refunding customers or investors of troubled companies have appeared online over the past year. Authorities have warned they are fraud schemes perpetrated by third parties that trick recipients into paying “service fees” but never cough up any cash.

Related: Chinese Online Grocer Missfresh Shutters Core Business After Failing to Secure a Lifeline

Quick Takes are condensed versions of China-related stories for fast news you can use.

Contact reporter Guo Yingzhe (yingzheguo@caixin.com) and editor Jonathan Breen (jonathanbreen@caixin.com)

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