Saddled with debt, Wenzhou boss takes flight
- By Yan Pei
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China.org.cn, September 23, 2011
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According to local forums in Wenzhou, bosses of Zhejiang Xinnaibao Shoes Co. and Zhejiang Ouba Fastener Co. are also on the run from about 100 million yuan of debts. [File photo] |
![According to local forums in Wenzhou, bosses of Zhejiang Xinnaibao Shoes Co. and Zhejiang Ouba Fastener Co. are also on the run from about 100 million yuan of debts. [File photo]](http://images.china.cn/attachement/jpg/site1007/20110923/0011111fa1560fe68ba747.jpg "According to local forums in Wenzhou, bosses of Zhejiang Xinnaibao Shoes Co. and Zhejiang Ouba Fastener Co. are also on the run from about 100 million yuan of debts. [File photo]")
The chairman of a private eyeglasses company in Wenzhou is rumored to have fled to the United States as the struggling company faces serious cash flow problems and possible bankruptcy, the 21st Century Business Herald reported Friday.
On the evening of Sept. 21, suppliers of the Zhejiang Center Group gathered around the gate of the company's new factory as word got out that the firm's chairman Hu Fulin may have run abroad to avoid paying off debt.
Local police were dispatched to seal the factory to prevent looting by anxious suppliers, sources told the newspaper.
But a mass of vehicles and people were still crowding around the factory as of Thursday morning.
Zhejiang Center Group is one of the largest eyeglasses makers in Wenzhou. The company's spectacles business reported 270 million yuan in sales revenue last year.
Local sources told the newspaper that the company may face as much as 2 billion yuan in debt.
If confirmed, Hu Fulin would not be the first boss to have run away from his debts. According to local forums in Wenzhou, bosses of Zhejiang Xinnaibao Shoes Co. and Zhejiang Ouba Fastener Co. are also on the run from about 100 million yuan of debts.
China's business press carried the story above on Friday.
