Today, the news of Huaxin chemical fiber auction has once again flooded the circle of friends of textile companies. This is the second time it has been auctioned, which can not help but make the textile companies who were already having a hard time back again. Cool!
Funding disputes, Huaxin Chemical Fiber was forced to embark on the path of bankruptcy auction
Huaxin Chemical Fiber held its first auction last year and was finally sold at a price of 826 million.
The bankruptcy originated in 2016 due to related companies guaranteed by Huaxin Chemical Fiber Technology Group Several asset dispute cases such as failure to fulfill loan repayment obligations have led to a series of financial disputes. In fact, from 2016 to the present, there have been prosecutions related to financial disputes. On May 8, 2017, Huaxin Chemical Fiber Technology Group Co., Ltd. applied for bankruptcy liquidation on the grounds that it could not pay off its due debts and its assets were insufficient to pay off all debts or it clearly lacked solvency. It was finally auctioned on November 15, 2019 for 826 million.
Chemical companies are having a hard time this year, and not only Huaxin, a textile company, has been auctioned in bankruptcy
In 2020, which originally had high hopes, a sudden epidemic disrupted the pace of the industry. As the overseas epidemic continues to spread, the domestic textile market has fallen into a worsening dilemma: customers are trapped in the epidemic or even lost contact, finished products cannot be delivered to customers or even driven out, orders have been reduced or even canceled, companies have stopped work, laid off employees or even closed down. A series of problems have caused a series of problems. The textile industry suffered a “big decline” in the quarter.
More than one textile company has been auctioned on Ali Auction. What is even more surprising is that some well-known companies have also fallen into bankruptcy. Facing such a “cold winter”, how to survive has obviously become a big test that enterprises need to face together.
On the People’s Court Announcement Website, from August 14th to September 10th, there were Suzhou Tianlun Textile Technology Co., Ltd., Tongxiang Jishi Seven textile and garment companies, including Textile Co., Ltd., Tianjin Textile Group Renli Woolen Co., Ltd., and Huzhou Zhili Wanxin Textile Co., Ltd., issued bankruptcy announcements.
No matter what the reasons were for the company’s poor performance in the early stage, the epidemic this year may It became the last “straw” that broke it.
“Due to the superposition of the epidemic and the off-season, many textile and fabric companies have failed in this ‘cold winter’ recently. The biggest reason for the collapse of these companies is the break of the capital chain, especially in the Under this year’s epidemic, funds are particularly important.
For current textile companies, although there are signs of recovery in foreign trade, in addition to protective clothing fabrics, they can receive actual orders But there are very few. Now, textile companies can basically only rely on domestic trade. Under this situation, many companies can only rely on production cuts and holidays to save expenses, while companies that were not performing well in the early stage went bankrupt. It makes sense.
According to industry insiders, in the first quarter of this year, many fabric companies had no orders to make due to both domestic and foreign trade being blocked, and some weaving companies The manufacturer’s inventory has reached a high of about two months. “If the inventory cannot be cleared, funds cannot be mobilized, and there is no money to buy raw materials, pay wages, etc.” Under this situation, many manufacturers will choose to sell goods to withdraw funds, but this will also lead to relatively chaotic market prices, and other manufacturers will have to join the “price war” to grab the shrinking “cake.” ”
At the end of every month, I will always see one or two Moments calling for payment. Given the current market situation this year, it may be more difficult to collect accounts. At present, many domestic trade and foreign trade customers have account terms of more than three months. In addition, they have to worry about customers going bankrupt and running away, and ultimately ending up with nothing.
2020 has entered the second half, which is even more difficult and unbearable. Now faced with the situation where the golden nine is not golden, it seems that it is hopeless to make up for the big hole of losses during the epidemic. , don’t expect a surge in demand, just expect to be able to keep your pants.
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