On the evening of April 15, the financial report for 2020 came out, and rashabel has been losing money for three consecutive years. From the former “Chinese version of Zara” to the listing of a + H shares, the women’s clothing giant is facing delisting crisis when it was founded 20 years ago. The president of the company has been changed from the founder to the designer, and has not been able to save the performance decline of rashabel.
According to the performance bulletin, in 2020, the company achieved a revenue of 1.819 billion yuan, a year-on-year decrease of 76.27%, and a net loss of 1.348 billion yuan. For this huge loss, rashabel explained that affected by the epidemic situation, the income of the company’s offline outlets dropped sharply, but it still had to bear the fixed expenses such as market rent and personnel costs, which led to a loss of about 900 million yuan. At the same time, the company further closed the offline inefficient stores, resulting in a loss of 250 million yuan due to the operating loss of the closed stores and the one-time confirmation of decoration amortization and other expenses.
It is worth mentioning that since rashabel landed on the Shanghai Stock Exchange in 2017, there have been continuous losses. In 2018, rashabel made a loss of 160 million yuan for the first time. In 2019, the net loss expanded to 2.166 billion yuan. In 2020, it will make a loss again.
So far, rashabel has been losing money for three consecutive years, which also makes rashabel “by ST”. On March 22, rashabel announced that the company’s net assets attributable to shareholders of listed companies after auditing by the end of 2020 are expected to be negative. If the company’s net assets attributable to the shareholders of the listed company are negative at the end of 2020, the company’s a shares may be subject to delisting risk warning.
This is the third time since 2021 that rashabel has warned of possible delisting risk. In the first half of 2020, rashabel also warned 12 times that delisting risk might be implemented.
As of the end of the interview, the reporter did not reply to the report on the future development plan of Beijing.
Bao Yuezhong, a new retail expert of FMCG, said that with huge losses and repeated delisting warnings, it is obvious that rashabel has entered a very difficult period. Loss plus negative net assets, has been “ST” rashabel is likely to directly delist.
Under the pressure of continuous loss of performance, since 2020, five people have been replaced as president of rashabel, and the candidates for president have tried one by one from finance, marketing, brand and other fields.
In February 2020, rashabel said that Yu Qiang had resigned as the executive director and President of rashabel because he needed to invest more time and energy in his own business, and Xing Jiaxing became the president of rashabel again. In April of the same year, rashabel once again announced that Xing Jiaxing applied to resign as president of the company for personal reasons, and Yin Xinzai, vice president, was promoted to President of the company.
However, Yin resigned less than four months after taking office. After Yin Xinzai resigned, the post of president of rashabel was vacant for three months. It was not until November 4, 2020 that rashabel decided on a new round of CEO candidates. On the same day, rashabel announced that Zhang Danling was the president of the company. It is reported that Zhang Danling has been working in rashabel since March 2001. As the co-founder of rashabel, she is mainly in charge of new retail, online channel and marketing.
However, only one month after taking office, Zhang Danling announced that she would resign as president and hand over the baton to Zhang Ying, vice president who has also worked in the brand mouth for many years.
At the same time of high-level turmoil, rashabel is also stepping up the offline contraction, and the number of stores has dropped sharply from nearly 10000 to less than 1000 so far. According to the data, at the end of 2017, rashabel had 9448 stores. In 2019, rashabel closed 4391 stores, an average of 12 a day. On January 30 this year, rashabel said in the announcement that in 2020, the number of offline outlets in China has dropped from 4878 at the beginning of the year to 959 at the end of the year. Beijing Business Daily reporter visited found that previously located in Fengtai District, Beijing Xinye square, the first floor of La xabelle has long been closed. And search La Chabel store from Gao de map, also leave 8 only.
In the case of successive losses, high-level turmoil and frequent shop closures, rashabel has always wanted to find a new way out. In terms of brand, rashabel has also changed from the previous M & A expansion to strategic contraction. It is reported that at the beginning of 2004, La Chapelle launched a multi brand development strategy, gradually expanding its category from women’s wear to men’s wear and children’s wear, with 12 brands including La Chapelle and puella. In addition, rachabel acquired NaF NaF SAS for 52 million euros.
However, in May 2019, rashabel sold 54.05% of its holding subsidiary Hangzhou enshe e-commerce Co., Ltd. at a price of 200 million yuan, and its online clothing brands such as qigege and othermix were also stripped.
With the influence of financial pressure, epidemic situation and other factors, a number of subsidiary companies of rashabel went bankrupt one after another. In January 2020, rashabel announced that Jack walker, a subsidiary, had bankruptcy reasons because it could not pay off its due debts and its assets were insufficient to pay off all its debts. The court accepted Jack Walker’s bankruptcy liquidation application. In May of the same year, rashabel announced that nafnafsas, an overseas wholly-owned subsidiary of France, was unable to pay off the debts owed by the supplier and the local government, and the local court had ordered it to start judicial restructuring.
At that time, the relevant person in charge of rashabel said in an interview with Beijing Business Daily that the company was in a critical period of transformation and development. For non core businesses with uncertain growth prospects, the company would significantly reduce or stop the investment of resources according to the current business situation.
In order to alleviate the pressure of development, rachabel began to learn from Antarctic e-commerce to “sell hangtag”. In September 2020, rashabel said publicly that it would change the traditional mode of online business from “planning and design – independent procurement – platform operation – online sales” to “brand authorization + operation service”. However, the move has also been questioned by the industry.
Economist song Qinghui believes that the road of too rapid expansion has already laid a hidden danger for the development of rashabel, and delisting may be only a matter of time.
Beijing Business News (reporter Qian Yu, Bai Yang, Zhang Junhua)
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