January-August More Than 21 Bathroom Company Assets Were Auctioned Off

Kitchen & Bath Headlines

According to incomplete statistics, in the first eight months of 2020 at least 21 sanitary ware enterprise assets were auctioned or will be auctioned, involving Zhejiang, Jiangxi, Anhui, Fujian, Guangdong and other parts of the country. In the same period, there are multiple claims involving sanitary ware enterprises are being auctioned or are investment, most of these enterprises are not clear, its creditors in the auction platform to lower than the debtor’s actual arrears of the starting price for the auction.

1-8 Month Super 21 Sanitary Ware Enterprise Assets Were Auctioned

According to the Ali judicial auction platform public information shows that from January to August 2020, the platform shelves more than 59 cases and sanitary enterprise related assets auction bids, involving 21 sanitary enterprises, including Zhejiang, Jiangxi 5 each, Anhui 4, Fujian 3, Guangdong, Hunan 2 each.

January-August Bathroom Industry Asset Auction Enterprise Incomplete Statistics:

(Based on information publicly available on the Ali Judicial Auction Platform)

Recently on the shelves, the starting price of more than 10 million yuan of two auctions were involved in Hunan first Tao stainless steel bathroom Co.

According to the enterprise check shows that Hunan first Tao stainless steel sanitary ware limited company was established in 2011, registered capital of 50 million yuan. In addition, according to an announcement issued by the Economic and Information Commission of Hunan Province in September 2017, as a benchmark and demonstration to guide the transformation and upgrading of small and medium-sized enterprises in the province, Hunan First Tao Stainless Steel Sanitary Ware Co. Ltd. had been selected for the 2017 Changde City Small Giant Enterprises List. And according to the People’s Court announcement website, Hunan First Tao Stainless Steel Sanitary Ware Co. has filed for bankruptcy in December 2019. The company’s assets were first auctioned in June 2020 with a starting price of 1,405,800 yuan, and after two unsuccessful auctions, a third auction is currently underway with a starting price of 1,024,600 yuan.

In addition, the auction assets of Taizhou Huangma Sanitary Ware Co., Ltd. is located in Taizhou City, Luqiao District, Pengjie Town, Tang Wang Village, plant and land use rights, the starting price of 16.33 million yuan. Ltd. was established in 2006, with a registered capital of RMB 6.8 million. According to the Supreme People’s Court, Taizhou Huangma Sanitary Ware Co., Ltd. has three records of loss of trust, the latest of which was published on July 7, 2020. This announcement shows that the company was fined RMB 215,680 yuan, all of which had not been fulfilled as of the announcement date.

More Involved In The Bathroom Enterprise Debt Was Auctioned

In addition to the physical assets-based auction targets, Ali judicial auction platform also shelves involving corporate debt auction targets. According to incomplete statistics, so far this year, and sanitary ware enterprises related to the creditor’s auction bids or the investment auction bids more than 27, involving zhejiang mint sanitary ware Co. Shen Lu Da Group Co. and other companies.

Among them, the claim involving Chaoan County Ketao Sanitary Industry Co. has been auctioned as many as 17 times since October 2019, with the latest auction taking place on Sept. 4 with a starting price of $1 million. According to the details of that auction, Chaoan County Ketao Sanitary Industry Co. and three related parties are the debtors.

In the rest of the debt auctions involving sanitary ware companies, most of the sanitary ware companies are debtor status, and there are companies with debts of more than 100 million yuan. For example, in the Industrial Asset Management Co., Ltd. released a titled “Industrial Asset Management of Fujian Oulian Sanitary Ware Co., Ltd. and other 17 non-performing credit disposal and investment announcement,” the announcement shows that, as of February 29, 2020, involving Fujian Oulian Sanitary Ware Co. At present, the auction is still in the investment.

So Far This Year, More Than 6 Sanitary Ware Enterprises Filed For Bankruptcy Liquidation

With the concept of housing and changes in consumer demand, the bathroom industry in recent years into a period of deep adjustment, enterprises in the management and operation of a series of new challenges. Under the changes, some companies have found their way forward, while others have filed for bankruptcy due to insolvency.

According to the People’s Court announcement website, as of September 3, there are at least six sanitary ware companies whose bankruptcy applications have been accepted in 2020, namely Qingyuan Huatao Sanitary Ware Co Ltd, Taizhou Red Sequoia Sanitary Ware Co Ltd, Taizhou Sanco Sanitary Ware Co Ltd, Zhongshan Hermes Sanitary Ware Co Ltd, Shandong Kaijie Furniture Co Ltd and Yuhuan County Lejia Sanitary Ware Co Ltd. Ltd. and Yuhuan County Lejia Sanitary Ware Co. Ltd. If added to the previous announcement was withdrawn, this year’s application for bankruptcy and liquidation of sanitary ware enterprises will be far more than six.

Bankrupt sanitary ware enterprises are mostly due to the capital chain breaks, unable to repay loans, some enterprises are also alleged to default on workers’ wages. Such as Zhongshan Hermes Sanitary Ware Co., Ltd. previously appeared in 2020 in Guangdong Province, the second batch of default on wages of migrant workers in the list of enterprises, the company owes 124 workers 977,000 yuan in wages are included in the “black list”.

It can be predicted that, in the industry’s internal self-adjustment and external force majeure, the bathroom industry will face a new round of reshuffle, the overall strength of the poor, the pressure of the capital chain, the ability to resist the weak enterprise will be eliminated by the market, can stay, are able to withstand the test of the market enterprise.