Need a Shoe Factory? China's Fuguiniao to Sell at Bargain Price After No Bids
Dou Shicong
/SOURCE : yicai
Need a Shoe Factory? China's Fuguiniao to Sell at Bargain Price After No Bids

(Yicai Global) Oct. 10 -- The selling price of Fuguiniao, once a leading Chinese leather shoe firm, may be discounted to about CNY227 million (USD31.9 million) after the first auction went by without any bidders. 

The suggested opening bid will be 20 percent lower next time, the National Business Daily reported today, citing a staff member of the Fujian province-based bankrupt firm. The original price was CNY283.7 million in the first online auction, held from Oct. 8 to yesterday. The sum included CNY121 million in accounts receivable.

A total of 91 people set up a reminder for the auction and more than 6,000 people viewed it but no one signed up to bid, according to data from Alibaba Group Holding's auction platform. 

Founded in 1995, Fuguiniao's performance has been dwindling for long. The company was forced to delist from the Hong Kong Stock Exchange in August after the Quanzhou City Intermediate People's Court declared the firm bankrupt. The company suspended its share trading at HKD3.88 (US 50 cents) already in Sept. 2016.

In the first half of 2017, Fuguiniao's net loss was CNY10.9 million (USD1.5 million), after suffering from waning gains over the preceding few years.  

Editor: Emmi Laine 

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Keywords: Fuguiniao , Bankruptcy , Auction