When someone shares with you something of value, you have an obligation to share it with others.
Friday 30 September 2011
Zhejiang employees demand pay after bankrupt boss flees
Among the protestors bringing traffic to a standstill in Wenzhou were previous employees as well as creditors who had loaned money to Zhejiang Center Group.
Zhejiang employees demand pay after bankrupt boss flees
27 September 2011
Among the protestors bringing traffic to a standstill in Wenzhou were previous employees as well as creditors who had loaned money to Zhejiang Center Group.
Thousands of staff members of bankrupt eyeglass producer Zhejiang Center Group, a company with 3,000 employees, took to the streets on Sept. 24 in Wenzhou in eastern China's Zhejiang province to request payment of their salaries.
Protestors, including both the company's employees and creditors, as well as headhunting firms who set up recruitment stalls in front of the company, paralyzed traffic in the city.
Hu Fulin, the company's chairman, fled Wenzhou with debts totaling 2 billion yuan (US$312 million). The company was scheduled to sign a new contract with a Hong Kong company on Sept. 20 but Hu suddenly called from another location asking his financial department to pay salaries to employees, adding that he would not return to Wenzhou, according to an insider.
Since the company is the biggest spectacle vendor in Wenzhou, related companies and creditors are worried that their loans will not be repaid.
"Creditors who went to protest definitely only loaned only small amounts of money to the company. Those who had given bigger loans didn't dare show up, because other creditors would have come after them," an insider told 21st Century Business Herald.
Some suppliers said the company went broke because of its fast expansion, building new plants and acquiring equipment but later failing to make a public listing, resulting in tightened finances.
A local industry insider said that Hu has in recent years paid little attention to the spectacles industry, adding that his funds were mainly used for other investments including real estate, stocks and photovoltaic energy.
1 comment:
Zhejiang employees demand pay after bankrupt boss flees
27 September 2011
Among the protestors bringing traffic to a standstill in Wenzhou were previous employees as well as creditors who had loaned money to Zhejiang Center Group.
Thousands of staff members of bankrupt eyeglass producer Zhejiang Center Group, a company with 3,000 employees, took to the streets on Sept. 24 in Wenzhou in eastern China's Zhejiang province to request payment of their salaries.
Protestors, including both the company's employees and creditors, as well as headhunting firms who set up recruitment stalls in front of the company, paralyzed traffic in the city.
Hu Fulin, the company's chairman, fled Wenzhou with debts totaling 2 billion yuan (US$312 million). The company was scheduled to sign a new contract with a Hong Kong company on Sept. 20 but Hu suddenly called from another location asking his financial department to pay salaries to employees, adding that he would not return to Wenzhou, according to an insider.
Since the company is the biggest spectacle vendor in Wenzhou, related companies and creditors are worried that their loans will not be repaid.
"Creditors who went to protest definitely only loaned only small amounts of money to the company. Those who had given bigger loans didn't dare show up, because other creditors would have come after them," an insider told 21st Century Business Herald.
Some suppliers said the company went broke because of its fast expansion, building new plants and acquiring equipment but later failing to make a public listing, resulting in tightened finances.
A local industry insider said that Hu has in recent years paid little attention to the spectacles industry, adding that his funds were mainly used for other investments including real estate, stocks and photovoltaic energy.
Post a Comment