Suppliers demanded payment again, Global Easy Shopping was asked to give a reply within a week

The suppliers in front of Global Easy Shopping have almost never dispersed. Half a month ago, a group of suppliers went to Global Easy Shopping in Nanshan District, Shenzhen to ask for payment for their goods. One of the ladies knelt down in front of Li Yong, the legal person of Cross-border Communication, and cried bitterly, hoping to get back the money owed to her, but it didn't work.

On June 29, several suppliers went to SAFU, a subsidiary of KCR, to collect debts. The two sides clashed under the interception of security and the scene was chaotic.

Previously, in order to fill the liquidity gap and repay debts, Cross-border Communication sold Paton for 2.02 billion. However, some of Paton's Amazon accounts were blocked in early May, which may be detrimental to the subsequent transaction funds. "Didn't Paton's account get blocked this year? Paton's funds have become a bit problematic." A supplier told the media.

In order to solve the debt problem, Cross-border Communication established a global debt settlement working group and appointed Xu Jiadong as the team leader, but the latter refused. When will this huge debt with far-reaching implications be resolved?

Suppliers demanded payment from SAFU, Global Easy Shopping was asked to come up with a solution within a week

On June 29, a large number of Global Easybuy's suppliers went to ZAFUL to collect debts .

According to the on-site video provided by the supplier, many people went to SAFU to collect debts, but were intercepted by security guards. The two sides clashed and the scene fell into chaos. The debt collectors entered the SAFU office area, making it impossible for the company's employees to work normally.

The blocked suppliers said bluntly: “Why are you blocking us? Isn’t this the same as not collecting our debts?”

This was one of many times that a large number of suppliers went to collect debts. Some suppliers may have gone to collect debts so many times that they can't even remember. Supplier D started collecting debts last year and has gone to collect debts dozens of times. In order to get the money owed as soon as possible, some suppliers even sent their families to take turns to collect debts on site.

Suppliers who went on hunger strike for two days, debt collectors who slept in the office of Global Easy Shopping, and women who knelt down before the senior management of Global Easy Shopping ( insert link ) ... These vivid cases of debt collectors made cross-border e-commerce people exclaim: "It's so pitiful to see the supplier hugging the chairman's legs, crying and shouting, "Give us back the money."

Why did the debt-collecting woman kneel down? She may be a microcosm of the situation of most suppliers. After some suppliers were delayed in payment, their entire business came to a standstill. They could not recover the funds and could not start new business. Some suppliers could not even pay their employees' salaries. Supplier Z was helpless: "I couldn't get the order without the payment period. After the payment period was given, it was delayed again and again. Now I can't get the money either."

So, this time the suppliers changed the location to collect the debt, did they get the money?

The editor interviewed several suppliers, and they all said that they still had not received the money they were owed, and the debt collection was at a stalemate. Debt collector Ms. Z said: "I haven't received a penny yet." Debt collector Mr. Zheng also said: "Global Easy Buy still says it has no money."

Although the debt has not been paid, there has been some new progress. According to Mr. Zheng, a debt collector at the scene, on June 29, the supplier's debt collection at SAFU was coordinated by the government. At the coordination meeting, the supplier raised some issues, and the government required Global Easybuy to give a clear answer within one week (by next Tuesday).

In the past, one supplier said: "Global Easy Shopping also promised to give us a reply after a certain period of time, but it ended up being delayed again and again. I don't know if it can be fulfilled this time."

Mr. Zheng further stated that at the coordination meeting, the supplier representatives also raised three demands, which are roughly as follows:

1. Before next Tuesday, Global Easy Shopping will reconcile all the suppliers whose accounts have not been reconciled. No matter who the company asks to do it, the accounts must be reconciled in the name of the company;

2. Let the major shareholders of Kuaijietong come up with a conclusion and let Kuaijietong and SAFU guarantee the debts of suppliers;

3. If there is no response to the above two questions, starting from next Tuesday, suppliers will continue to go to SAFU to collect debts and cannot be stopped anymore.

Mr. Zheng said that the suppliers only wanted to get back their hard-earned money and hoped to peacefully discuss solutions through coordination meetings. However, the scene where the suppliers went to SAFU to collect debts was chaotic. Here, Yien.com also calls on debt collectors to rationally protect their rights and use the law to solve problems reasonably. We also ask the heads of relevant units to give the debt collectors a reasonable explanation as soon as possible.

After divesting its high-quality asset , SAFU , can Global Easy Shopping repay its debts?

Why did the suppliers go to SAFU to collect debts? Because SAFU was once a profitable asset of Global Easybuy.

According to the "BrandZ™ Top 50 Chinese Global Brands in 2020" jointly released by Google and Kantar , ZAFUL, a subsidiary of GlobalEasy, has been on the list for the second consecutive year; on the online fast fashion list, ZAFUL ranked second, second only to SHEIN.

From the perspective of brand influence, SAFU is definitely a high-quality asset of Global Easybuy. At the end of last year, SAFU was separated from Global Easybuy.

After the brand was operated independently, an investor asked Global Easybuy: Does your company want to focus on high-quality fast fashion assets after slimming down to overcome difficulties ?

Global Easy Shopping stated that its apparel division is now operating independently as a subsidiary, creating a clothing brand matrix with ZAFUL as the main component, giving full play to the advantages of past experience and leading the company's cross-border e-commerce export business to a higher level.

An industry insider said that when he saw Global Easybuy establish ZAFUL, he had a hunch that the ZAFUL business should be separated from Global Easybuy, at least to reduce the impact of the Global Easybuy incident on ZAFUL's business.

SAFU has become an independently operated fast fashion company. If there is any connection with Global Easy Shopping, it is that SAFU's rise began with the foundation of Global Easy Shopping. However, suppliers said bluntly: "SAFU is a high-quality asset of Global Easy Shopping. Global Easy Shopping directly divested it and threw a lot of debts to suppliers. Does SAFU have nothing to do with the debts?"

According to the debt collector, Mr. Zheng, when Global Easybuy was facing debt collection last year, it originally intended to sell SAFU for 3 billion yuan, but the investor later offered 1.8 billion yuan. In the end, the two sides could not reach an agreement on the price, and SAFU was not sold, but was separated. Mr. Zheng's statement remains to be verified, but the separation of SAFU has become a fact.

Debt collector D analyzed: "If SAFU is sold and the money is taken back to Global Easy Shopping, the money could be used to pay off the debts of suppliers, which is reasonable. However, now it is a direct asset divestiture, which is equivalent to SAFU's independence. Global Easy Shopping has not received the money, and the suppliers' debts have been in arrears. This involves the issue of capital operation, and SAFU should bear the responsibility at the same time."

Some netizens said: "The only profitable high-quality asset has been separated. How can we pay the money owed to suppliers and third-party service providers? That's hundreds of millions!"

According to employees of Global Easy Shopping, the company owes money to more than 3,000 suppliers, with a total debt of approximately RMB 450 million, and also owes logistics companies approximately RMB 300 million, totaling more than RMB 700 million.

According to an inquiry on Tianyancha, as of the end of June, the amount of money that Global Easy Shopping had to execute was as high as 65.20892 million yuan according to the court's ruling; there were 92 lawsuits still awaiting the court's hearing and judgment, involving a litigation subject of 151.9837644 million yuan.

After divesting its high-quality assets, can Global Easybuy still pay off its debts? So far, there is no sign that Global Easybuy has paid off its debts, and Saf has not received any results from its suppliers’ debt collection efforts.

Relevant data shows that Global Easybuy 's revenue in 2019 was 8.506 billion yuan, and in 2020, its revenue dropped to 5.629 billion yuan. Due to the sharp decline in revenue in the past two years and the provision for inventory impairment, the company suffered a large loss. Currently, Global Easybuy's total liabilities have reached 3.379 billion yuan.

Mr. Zheng, the debt collector, was distressed: "In fact, the Global Easy Shopping platform is very good. What we are afraid of now is that a few major shareholders will mess around. This is ultimately to drive suppliers to death. In fact, Cross-border Communication can sell its assets, just like it sold its subsidiary Paton. "

Paton was sold for 2.02 billion, why couldn’t it save Global Easybuy?

In order to recover cash to fill the working capital gap and repay debts, Cross-Border Link transferred Paton to Xiaomi and other companies for 2.02 billion yuan, and completed the industrial and commercial change procedures at the end of April.

Supplier Ms. Zhou said that several Global Easybuy employees had told her that part of the proceeds from the sale of Paton would be used to repay debts owed to suppliers and banks. This money was crucial to relieving the urgent need for suppliers to pay for goods. But things did not go as expected.

Just one week after Paton's industrial and commercial changes, its Amazon account was blocked, and a large number of products in its main brand stores became unsaleable. There were even reports that "Paton went bankrupt." On May 13, Paton's official WeChat account published an open letter in which General Manager Liu Yongcheng stated that although some of the company's Amazon accounts were blocked, the company's operations were normal.

(Part of Paton's open letter)

The open letter mentioned that Paton was actively promoting the restoration of the account, the overall process was optimistic, and sales were being restored through various means; cash flow was normal, and investors were also helping to resolve the problem. However, the outside world was not so optimistic. Paton was known as one of the "Three Heroes of Amazon", and the closure of its Amazon account was a big deal for it.

A supplier told a reporter from China Business News: "Didn't Paton's account get blocked this year? Paton's funds have become a bit problematic. Otherwise, after Paton was sold and the debts were repaid, the listed company should have several hundred million yuan more." The supplier who was collecting the debt this time also said that he had received similar news.

But was the fact that the funds for the sale of Paton were not in place related to the closure of its account? Kuaishou did not confirm this at the time.

How is the status of the proceeds from the sale of Paton? On June 30, Cross-border Communication responded to investors' questions and said that the first installment of the sale of Paton has been received, and the second installment of 37 million is gradually arriving.

After the account was blocked, Paton was unable to take care of himself. Now it seems difficult for him to use the money from selling himself to repay Universal's debt.

Global Debt Cleanup Working Group Established, Founder Xu Jiadong Refuses to Become Group Leader

Recently, Cross-Border Link issued an announcement that its subsidiary Global Easy Shopping recently received a "Notice" ([2021] Guangdong 03 Bankruptcy Application No. 380) delivered by the Shenzhen Intermediate People's Court. The applicant, Industrial and Commercial Bank of China Limited, Shenzhen Nanshan Branch, applied for the bankruptcy of Global Easy Shopping; and stated that "some suppliers continue to gather in the office of Global Easy Shopping, affecting its normal office work." Therefore, it plans to establish a special working group for Global Easy Shopping's debt liquidation to specifically deal with Global Easy Shopping's supplier debt matters.

Considering that Xu Jiadong is the founder of Global Easy Shopping, is familiar with the historical causes of Global Easy Shopping's supplier debts, and has a full understanding of Global Easy Shopping's suppliers, Xu Jiadong was appointed as the team leader, and Xu Jiadong was asked to arrange Li Junling, the actual person in charge of Global Easy Shopping's early financial affairs, as the deputy team leader to be responsible for financial work related to supplier debts.

But Xu Jiadong objected, saying that without the consent of the two parties, the proposal violated the law and regulations. Decision-makers and management should sincerely face suppliers and propose solutions instead of shirking responsibility.

Xu Jiadong and Li Junling did not accept the appointment at this board meeting, but the working group was still established.

Cross-border Link said that it authorized the Global Debt Clearance Working Group to jointly sign the payment confirmation letter drafted by the company with suppliers and other relevant personnel for the debts between Global Easybuy and a single supplier that do not exceed RMB 500,000 (excluding principal), based on full due diligence, verification of relevant material data with Global Easybuy business personnel, and consensus with suppliers. The Global Debt Clearance Working Group must confirm the debts of suppliers within the above scope with the signatures of more than half of the Global Debt Clearance Working Group members.

What is the role of the debt settlement team?

Cross-border Communication released the contact information of the working group members. One supplier said: "At first, we were able to contact them, but later they said we couldn't. The WeChat screenshot yesterday was of one person. I added another but it didn't go through. So they just asked you to register on site. From last year to now, many people have registered no less than ten times."

There was a chance the standoff could be eased.

On June 26, in the Global Easy Shopping conference room, Yang Jianxin, Chairman of the Supervisory Board of Cross-Border Link, and 15 invited Kaiping supplier representatives learned about and communicated on how to resolve the issue of supplier arrears, but the meeting was not harmonious.

After the meeting, the Global Easy Shopping Debt Handling Team issued a statement saying that "during the meeting, some uninvited people were shouting outside the meeting room" and maliciously spread the video clips of the scene.

(Part of the notice from the Global Debt Management Team)

Suppliers have had very different responses to this.

A supplier said: "Yang Jianxin was asked by Qianhai police to come out to meet with suppliers on the afternoon of the 26th. On Saturday, many suppliers arrived in the morning, and even more arrived in the afternoon. Then a group of people talked at around 2 o'clock, and everyone else was waiting outside until 10 o'clock. When they entered the meeting room, they asked to take away the mobile phones of the participating suppliers, and did not allow any supplier to take photos."

"Our questions are: first, those 15 people were selected by them, and they cannot represent everyone; second, are there any unqualified people among the 15 people? Third, should the results be made public and everyone's follow-up arrangements be made in a unified manner? Fourth, regarding the "misleading text" and "factual inconsistency" in the video, more than one person from Global Easybuy filmed the entire meeting, why not publish all the videos? Why not allow suppliers to film? Why not publish the video of Yang Jianxin speaking?"

The supplier admitted that after the incident on the 26th, judging from the video footage from the scene on June 29th, both the debt collectors and Global Easybuy staff were in an extremely nervous state.

What will happen to this dispute over sales debts, which was caused by the former leader of cross-border e-commerce and involves numerous companies and huge amounts of money?

Suppliers, Debt Collection, Global Shopping