On November 11, the Shanghai Xuhui District People’s Court’s execution ruling ((2020) Hu 0104 Executive No. 1977) published by the China Judgment Document Network showed that the women’s clothing brand Xinjiang La Chapelle Clothing Co., Ltd. (hereinafter referred to as “La Chapelle”) “Charbel”) has no property available for execution in his name, and the execution proceedings are terminated. The execution ruling will be signed on November 6, 2020.
Changing presidents four times in one year
Prior to this, on the evening of November 4, ST Rasha (603157.SH) issued an announcement stating that , after the qualification review of the Nomination Committee of the Board of Directors, the Board of Directors agreed to appoint Zhang Danling as the president of the company, with a term starting from the date of review and approval by the Board of Directors until the expiration of the fourth session of the Board of Directors. The announcement stated that Zhang Danling has worked at La Chapelle for nearly 20 years and is very familiar with the company’s business model and internal management. Her appointment as president is in line with the company’s actual situation at this stage. It is worth noting that this is the fourth time the company has changed its president in the past year.
In fact, this position has been vacant since the previous president resigned. According to Cheng Weixiong, a textile and apparel brand management expert and founder of Shanghai Liangqi Brand Management Co., Ltd., the reason for the internal promotion is because internal staff have a better understanding of La Chapelle’s development, so they can make corresponding adjustments more quickly. But as far as La Chapelle’s current situation is concerned, no matter how powerful the CEO is, it will be difficult to save her from the fire. High debt and huge performance losses make it difficult for La Chapelle to solve these problems.
In fact, due to its own performance losses, increasing huge debts, and facing delisting and other problems, La Chapelle’s president has been changing frequently. The reporter combed through and found that La Chapelle had changed the position of president four times in the past year. In October 2019, Xing Jiaxing, chairman and president of La Chapelle, applied to resign as president and still serves as the company’s chairman and legal representative. As for the position of president, Yu Qiang took over and was fully responsible for daily operations and management.
In February 2020, La Chapelle said that Yu Qiang had resigned from his positions as executive director and president of La Chapelle because he needed to devote more time and energy to his own business. At the same time, Xing Jiaxing became the president of La Chapelle again. In April of the same year, La Chapelle announced again that Xing Jiaxing had applied to resign as president of the company due to personal reasons, and his vice president Yin Xinzai was promoted to president of the company.
However, less than four months after taking office, Yin Xinzai resigned again. In August 2020, La Chapelle announced that the company’s president, Yin Xinzai, had resigned due to personal reasons. After his resignation, Yin Xinzai will still serve as the company’s director and corresponding positions in the special committees of the board of directors. At the same time, La Chapelle said it would complete the selection of the new president as soon as possible.
In addition to the frequent changes of presidents, many senior executives of La Chapelle also resigned. The first half annual report shows that Wang Wenke and Rui Peng applied to resign as directors and independent directors of La Chapelle in February; Shen Jiaming resigned as chief financial officer of La Chapelle in March.
“Under the pressure of performance, La Chapelle frequently changes senior executives, which also reflects La Chapelle’s confusion and loss as she tries to save herself but has no other way.” Cheng Weixiong analyzed.
Data show that La Chapelle achieved revenue of 1.741 billion yuan in the first three quarters, a year-on-year decrease of 69.75%; the net loss reached 783 million yuan. As of the end of the first quarter of 2020, La Chapelle’s total assets were 7.234 billion yuan and total liabilities were 6.429 billion yuan. At the same time, La Chapelle also disclosed in its financial report that the company closed a total of 3,510 stores in the first three quarters, accounting for 64.34% of the number of existing stores at the end of last year. On July 1 this year, La Chapelle was issued a delisting risk warning, and the company was subsequently removed from the list of Southbound Stock Connect stocks under Shenzhen-Hong Kong Stock Connect. At this point, La Chapelle officially “puts the hat on” and the stock code was changed to “ST La Chapelle”.
In addition. The financial report shows that as of September 30, 2020, La Chapelle’s total assets were 4.818 billion yuan and total liabilities were 4.408 billion yuan. Imminent risk of insolvency.
In the first half of this year, La Chapelle also moved the company’s registered address from Shanghai to Xinjiang. Professionals said that this move is mainly to obtain relevant support such as policies and funds in the place of relocation, so as to broaden the company’s financing channels and relieve certain financial pressure.
There is no property available for execution in his name
On November 11, the China Judgment Document Network announced the execution ruling of the Xuhui District People’s Court of Shanghai The ruling shows that the person applying for execution, Shanghai Jinghao Textile and Apparel Co., Ltd. (hereinafter referred to as “Jinghao Textile”), applied for execution to the Xuhui District People’s Court of Shanghai on June 9, 2020, requesting the persons subject to execution, La Chapelle and Nuo Xing. (Shanghai) Clothing Co., Ltd. (hereinafter referred to as “Nuoxing Clothing”) paid a total of 1,964,344.94 yuan and interest.
Source: China Judgments Network
During the execution process, the court found that the person subject to execution, Nuoxing Clothing, is an affiliated enterprise of La Chapelle.
And according to the execution ruling, due to the poor management of the party subject to execution, La Chapelle, there are currently some cases in the court. Dozens of execution cases have been executed, with execution targets in the hundreds of millions of yuan. During the execution process, the court has seized 38 trademarks held by La Chapelle, and also seized Shanghai La Chapelle Enterprise Management Co., Ltd. held by it.��, Shanghai Weile Clothing Co., Ltd., Shanghai Youshi Clothing Co., Ltd., and Nuoxing (Shanghai) Clothing Co., Ltd. have relevant equity interests, but they currently do not meet the conditions for disposal.
In addition, after the court inquired through the Real Estate Registration Center, banks, vehicles, securities and other departments, it was found that the bank accounts of La Chapelle and Noxing Clothing have been frozen by other cases, and there is no property available for execution.
The above situation has been informed to Jinghao Textile, the person applying for execution, and the person applying for execution cannot provide other property information of the person subject to execution that can be used for execution. Due to failure to perform their obligations, the court has taken measures to restrict high consumption against La Chapelle’s legal representative Xing Jiaxing and Nuoxing Clothing’s legal representative Xing Kunmei, and has taken measures to restrict high consumption against Duan Xuefeng in other cases.
The People’s Court of Xuhui District, Shanghai ruled that because there is no property available for execution in the name of the person subject to execution, this case does not meet the conditions for continued execution, and there is no need to continue this execution procedure, so it should be terminated. </p
