(Yicai) March 13 -- The founder of Zhongxuegao was banned from lavish consumption after the Chinese ice cream sensation faced troubles for failing to meet payment obligations.

Zhongxuegao and its founder Li Sheng were restricted from high spending, and the company has been ruled to pay CNY810,000 (USD112,670), according to corporate information platform Tianyancha.

Prices of Zhongxuegao’s ice cream products have recently plunged from the highest of CNY60 (USD8.35) to about CNY10 at the firm’s official store and CNY4 (56 US cents) in other online stores.

A wholesaler told Yicai that his store no longer sells Zhongxuegao products as they are not worth it, especially because Chinese consumers mainly follow internet trends.

Yicai visited Zhongxuegao’s headquarters in Shanghai and found the main entrance locked. The company’s research and development center in the same building was open, but many office chairs were piled up in the hallway.

Zhongxuegao’s official accounts on Chinese social media platforms Weibo and WeChat have been silent since August last year. But the company’s last livestreaming event on short-video platform Douyin was held on March 8. Zhongxuegao is still recruiting personnel for Douyin.

Founded in 2018, Zhongxuegao was an ice cream sensation in China for a few years. Between 2019 and 2022, it beat Häagen-Dazs to become the top ice cream brand in China by sales during the Double 11 Shopping Festival by racking up over CNY100 million (USD14 million).

But in July 2022, Zhongxuegao’s ice creams were under fire on social media because it seemed like they could not melt under the sun. Last October, Zhongxuegao was accused of having arrears. The company later responded that it was resolving related disputes and it was operating normally.

Editor: Futura Costaglione