(Yicai Global) Dec. 15 -- Gome Retail Holdings’ founder and controlling shareholder has arranged a second interest-free loan this month for the cash-strapped Chinese electrical appliances retailer.

Huang Guangyu’s wholly-owned firm Sinning Crown will offer a HKD200 (USD25.7 million) loan at no interest to Gome, the Beijing-based retailer announced late yesterday. Gome secured a HKD150 million interest-free loan from Huang on Dec. 8.

Gome will use the funds to replenish its liquidity and pay salaries, according to a source close to the company. Huang raised the funds by selling a part of his stake in Gome at a discount, the person added. He owned almost 28 percent of the company as of Dec. 9.

Gome announced earlier this month that it had extended to a year a six-month salary payments halt that started in October because of operational difficulties.

Shares of Gome [HKG: 0493] fell 0.7 percent to close at 15 Hong Kong cents (2 US cents) today, after jumping by as much as 6.7 percent at the open. 

A source close to the firm told Yicai Global on Dec. 8 that it would close small, unprofitable stores in 30 regions across China and move into live-streamed e-commerce by joining hands with TikTok operator Douyin in a bid to stay afloat in a changing retail landscape.

Gome recently initiated the Gome Cup sales promotion nationwide, in which its units invited 10 outstanding salespersons to join a livestreaming sales competition next week.

Editor: Futura Costaglione