(Yicai Global) Dec. 9 -- The liquidation of Shanghai Shangshu-Yonghui Fresh Food will not affect Yonghui Superstores’ investment returns, the company, which is its second-largest shareholder, announced yesterday.

Shangshu-Yonghui had about 34 stores in Shanghai as of the time it filed for the bankruptcy liquidation, which a Shanghai court recently accepted, but its business is bad, nonetheless. The firm reported CNY733 million (USD112.2 million) in book assets and CNY859 million in liabilities as of Oct. 31. Several suppliers have sued it for defaulted goods payments.

Shangshu-Yonghui’s liquidation will have no effect on Yonghui Superstores’ investment returns this year or for years to come, per the announcement. Shangshu-Yonghui and its subsidiary had CNY2.5 million (USD382,250) in outstanding debt as of the announcement.

Yonghui Superstores’ stock price [SHA:601933] closed 0.65 percent down at CNY7.70 (USD1.18) at noon today.

Formed in 2013, Shangshu-Yonghui is a fresh food retailer that also sells processed food. The firm has finished its C round funding, and its largest shareholder is the state-backed Shanghai Vegetable Group subsidiary SVG Agricultural and Sideline Products. Yonghui Superstores holds a 32.14 percent stake in the firm.

Yonghui Superstores and Shanghai Vegetable Group penned a deal in December 2013 to set up the joint venture in Shanghai for CNY100 million to run fresh food markets of up to 4,000 square meters, aiming for the JV to be a leading fresh food retailer in the eastern Chinese megacity.

Editor: Ben Armour, Xiao Yi