The woman knelt down and begged Global Easy Shopping: "Give me back my money!"

The industry's big sellers have been hit by a series of setbacks.

In the past month, Cross-border Link and its subsidiaries have filed 41 new lawsuits and arbitrations, including one company suing Hong Kong Global over a sales contract dispute involving more than 18 million yuan. Due to long-term overdue payments, Global Easy Shopping was blocked again yesterday, and a woman even knelt down and begged.

Kneeling down to collect debts: "Please give us back the money!"

In mid-May, Global Easy Shopping told suppliers who came to collect debts that it would come up with a plan on June 15th. In early June, Global Easy Shopping was declared bankrupt. If it eventually goes bankrupt, according to the repayment order, the suppliers at the end of the list may not get paid for their goods and lose all their money, which makes them very panicked.

The agreed date of June 15th passed quickly, but there was still no progress on the payment. So on June 16th, a large number of suppliers came to the downstairs of Global Easy Shopping Company in Nanshan District, Shenzhen to collect their debts. One of the women knelt in front of Li Yong, the new legal person of Cross-border Communication, and cried: "Give us the money! Give me back the money!"

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The debt collectors at the scene were very excited: "Should we all kneel down together?" Some were very angry: "How can you do things this way!"

The editor interviewed this lady who was kneeling to collect debts. She supplies consumer electronic products such as keyboards and mice to Global Easy Shopping and is currently owed 100,000 yuan in payment. Unfortunately, kneeling did not make Global Easy Shopping agree to repay her.

Yien.com has compiled information on a small number of suppliers who are owed money. Just the tip of the iceberg is jaw-dropping:

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These suppliers are located in Shenzhen, Guangzhou, Foshan, Dongguan, Hangzhou, Shaoxing, Yiwu, Zhongshan, Shanghai, Yongkang, Jinjiang, Xiamen and other places, covering many major domestic product belts; in terms of the scale of debts owed, at least two merchants have amounts of more than 3 million, 200,000 to 300,000, 600,000 to 700,000 are also common, and those with less than 100,000 are rare.

In order to get back the payment, most suppliers went to the site to collect debts no less than 5 times, and some merchants went 10 or 20 times. One supplier said that there were more than 10 on-site debt collection in 2021 alone. Some merchants even went to collect debts more than 30 times but still did not get the payment.

These debt collectors did not return all night. This morning one merchant said: "I will be there soon. I will stay there tonight. I will risk my life. My son was there all day and all night yesterday."

The editor consulted the staff of Global Easy Shopping about the debt issue, and the other party said: Information about suppliers and related information is confidential, and the leaders are actively handling it. We do not understand the specific information for the time being and cannot respond.

So how did the leaders deal with it? A supplier at the scene reported: "Chairman Li Yong was there, but he said he had no money." As soon as this statement came out, the suppliers panicked: "Such a large listed company, the people's hard-earned money has no guarantee at all, how dare we continue to cooperate with them in the future."

"We owe more than 1 million yuan and can't even pay our employees' salaries"

Many companies are struggling to survive due to the huge debts.

An electronic product supplier said that from 2019 to now, Global Easy Shopping owed it more than 1 million yuan. "It can't even pay the employees' salaries, and Global still hasn't given any response regarding repayment," the merchant said.

Ms. Luo is a health and personal care product supplier at Global Easy Shopping. "I was not paid for the goods when the due date came, so they took the goods off the shelves and stopped supplying me. I still have more than 25,000 yuan to pay, and not a cent has been paid in more than two years."

On May 6, Ms. Luo and several other suppliers came to the downstairs of Global Easy Shopping. "Three riot police cars came downstairs early, and community staff came to coordinate. The building security guards kept stopping us from going up to the second floor." After a day of stalemate, Ms. Luo only got a reconciliation confirmation slip.

A home furnishings supplier from Yiwu was also there that day. This was her second time to collect debts. In March 2019, she began to supply goods to Global Easybuy with a 60-day payment period. In about half a year, she was owed more than 260,000 yuan in payment, and she has not paid a penny so far. "From the end of last year, they said March today, then in March they said May, and in May they said June. Now there is no time at all," she said.

(Account confirmation received by the merchant)

How much debt does Global Easybuy owe? How many other suppliers are there?

According to previous reports, an employee of Global Easy Shopping said, "Global Easy Shopping owes money to more than 3,000 suppliers, about 450 million yuan in arrears to suppliers, and about 300 million yuan to logistics, totaling more than 700 million yuan."

The security guard said to the suppliers who were used to coming to collect debts: "In November 2020, a supplier of surveillance cameras in Dongguan was owed about 10 million yuan by Global Easy Shopping. More than 20 people came, and several of them slept in the lobby of Global Easy Shopping at night."

The money owed is real money. One merchant said: "Our company will do this, and we will collect debts while pursuing legal action. If there are suddenly hundreds of court appointments, it will inevitably alert more senior executives and departments." But winning the case is not the end. A supplier said: "One of my colleagues sued Global Easy Shopping and won the case for more than a year, but I haven't received the money yet."

Want to get paid as soon as possible? 20% off on the payment

According to feedback, some suppliers have gradually received some of the payments in the past two years, but some of them have paid a considerable price.

Ms. Luo said that Global Shopping had not provided a payment plan. In September last year, Global Shopping said that it could pay, but she had to go to the company to sign a discount contract, which meant that if she agreed to a discount, she could pay in advance, but if she did not agree, she would have to wait until April this year to pay in installments.

"Universal's unfair terms were not reasonable in the first place. They offered me a 15% discount, but I did not agree. Every payment is the hard-earned money of the workers. Our boss did not agree to supply him with goods, so Universal looked for other suppliers. If they could get part of the money owed, it would be difficult for suppliers who did not supply goods to get paid."

Referring to the current debt situation of Global Easy Shopping, even if the merchants accept the discount request, they can only get back part of the previous payment, and the payment for subsequent supply is still not guaranteed. However, the merchants who see the situation is not right do not have many choices.

A supplier also said that seeing that the situation was not right and needing money, he gave a 20% discount and got back the payment of hundreds of thousands of yuan for clothing goods, but the electronics division is in a difficult situation and still has outstanding debts.

The merchant further stated that the one who offered discounts to get payment was ZAFUL. However, more suppliers said that they had not received any messages such as "discounts to get payment". One of them complained: "Most of our payments are for 2019. We have not discussed any discounts, and we have not been paid a penny. The travel expenses have cost thousands of yuan."

In addition to debt collection in person, companies with large debts directly initiate lawsuits.

Five new major lawsuits were filed , and Cross-border Communication owed more than 200 million yuan in total debt

The China Judgments Online website shows that there are 18 judgments and rulings on sales contract disputes involving Global Easy Shopping .

( Partial screenshots )

In a recent lawsuit, the court found the following facts: In May 2019, Shenzhen Global E-Commerce Co., Ltd. purchased a white banquet tent from Jinyun County Hengbo Outdoor Products Co., Ltd., and agreed to pay monthly for 30 days. After Jinyun County Hengbo Outdoor Products Co., Ltd. delivered the goods, after verification by both parties, Global E-Commerce should pay 261,128 yuan for the goods, and the remaining 211,128 yuan has not been paid so far. The court ruled that Global E-Commerce should pay Hengbo Outdoor Products Co., Ltd. 211,128 yuan for the goods on the date the judgment takes effect, and calculate the interest loss.

Subsequently, Global Easy Shopping appealed, claiming that the supplier had not provided effective evidence to prove that it had fulfilled its delivery obligations. The appeal was rejected and the original judgment was upheld.

At the same time, recently, Cross-Border Link released an announcement of new major lawsuits and arbitrations, including 5 cases in which the plaintiffs include banks and logistics companies.

Among them, the creditor FUNDPARK was owed 18.66 million yuan; the creditor Industrial and Commercial Bank of China Shenzhen Nanshan Branch was owed 21.74 million yuan; the creditor Wang Guojun was owed 87.51 million yuan; the Bank of China Shenzhen Nantou Branch was owed 39.06 million yuan; and Jinquan (China) Trading Co., Ltd. was owed 19.70 million yuan. The five creditors were owed a total of about 187 million yuan.

In an announcement released to the public, Cross-Border Link mentioned that the company disclosed the "Major Litigation and Arbitration Announcement" on April 30, 2021. From the disclosure of the announcement to the date of disclosure of this announcement, the company and its subsidiaries have accumulated 41 new lawsuits, arbitrations, and labor disputes, involving a total litigation amount of 210 million yuan, accounting for 17.22% of the company's latest audited net assets.

Cross-Border Link also mentioned that in addition to the above-mentioned lawsuits or arbitration matters involving amounts of more than 10 million yuan, the company's wholly-owned subsidiary Shenzhen Global Easybuy has a total of 28 small lawsuits and arbitration matters, involving a total amount of approximately 20.83 million yuan; 8 labor dispute cases, with a total amount of approximately 1.46 million yuan.

The creditors who have sued Cross-Border Link have been owed a total of more than 200 million yuan, not including many small suppliers and logistics companies that have not yet filed lawsuits.

Global Easy Shopping was declared bankrupt, and creditors are anxious

Among the new major lawsuits against Cross-border Communication, one of the creditors is the Shenzhen Nanshan Branch of Industrial and Commercial Bank of China. On June 4, Cross-border Communication's subsidiary Global Easy Shopping was filed for bankruptcy reorganization, and the applicant was the Shenzhen Nanshan Branch of Industrial and Commercial Bank of China.

After the bankruptcy liquidation was filed, a group of creditors were "anxious". One creditor who came to collect debts said helplessly: "If bankruptcy liquidation really happens, the priority should be the severance pay of employees, followed by the settlement bank and the company that applied for court enforcement. When will it be my turn? Whether these debts can be collected and when they can be collected are all unknown."

According to the law, the debts of enterprises declared bankrupt by the court should be compensated according to law. The order of repayment is: 1. Wages and subsidies owed to employees; 2. Social insurance and taxes owed by the bankrupt; 3. Ordinary bankruptcy claims. If the bankruptcy property is not enough to repay the claims of the same order, it will be distributed in proportion.

According to public information, Cross-Border Link is currently suffering from serious losses. In 2019, Cross-Border Link lost about 2.7 billion. The reason for the loss was that the inventory could not be sold, and the company made a large provision for asset impairment of about 2.87 billion. In 2020, Cross-Border Link's net profit attributable to shareholders of listed companies was -3.3 billion. The reason for the loss was a sharp decline in Global Easybuy's business, the closure of some businesses, and a reduction of about 3/4 of the staff. The short-term high severance pay and other losses caused by the staff reduction led to a loss of about 2.5 billion yuan for Global Easybuy.

The drag of Global Easy Shopping may be the main reason for Cross-border Link's losses. Relevant data show that Global Easy Shopping's revenue in 2019 was 8.506 billion yuan, and its revenue in 2020 dropped to 5.629 billion yuan. Affected by the sharp decline in revenue in the past two years and the provision for inventory impairment, the losses are relatively large. At present, Global Easy Shopping's total liabilities have reached 3.379 billion yuan.

Facing the problem of liquidity shortage, Cross-border Communication sold Paton this year to "save itself" and received a transfer fee of 2.02 billion yuan. The purpose of the transaction was to recover cash to fill the liquidity gap and repay debts. What proportion of this 2.02 billion yuan was used to repay debts?

Today, a large number of creditors still have not received the money they deserve. Some of them have filed lawsuits, while others have repeatedly come to the door to collect debts. This rights protection action started in 2019 and it is unknown when it will end.