Investor reporter Sun Wei-tao -- Misfortunes never come singly. Following the employees' wage claim incident, TuanBao.com (Weibo) is now embroiled in a dispute with partner merchants over unpaid debts, with Hangzhou company registration involved.
Recently, a former employee of TuanBao.com told the Investor reporter that some employees have applied for labor arbitration in cities such as Beijing, Tianjin, and Hangzhou to claim their unpaid wages.
According to further investigations by the reporter, TuanBao.com not only owes millions in unpaid wages to its employees but also at least tens of millions in unpaid debts to merchants. Merchants across the country have begun to unite, planning to sue TuanBao.com and its founder Ren Chunlei (Weibo).
Unsuccessful in reclaiming their wages, some employees apply for labor arbitration
An employee from TuanBao.com's Beijing Call Center told the Investor that the unpaid wage issue mainly stemmed from sudden layoffs at the end of last year. TuanBao had promised to pay the owed wages and compensation by January 20th, but failed to honor this commitment, leading employees to block the headquarters in Beijing on the first working day after the Spring Festival to demand payment.
Recently, an Investor reporter specially visited TuanBao's headquarters located on the 19th floor of the United Building in Chaoyang District, Beijing. However, the reporter found the office area locked and empty, with only the signboard hanging on the wall indicating it was once TuanBao's office space. The reporter also noticed that one of the offices had been dismantled, while through the glass of the other two offices, neatly arranged desks, chairs, and computers could be seen.
A staff member of the United Building told the reporter: "On January 29th, many people came here demanding their wages, after which everyone went on holiday, saying they would return on the 16th day of the first lunar month." On the glass door of TuanBao's office, the reporter also saw a notice stating that due to the Spring Festival holiday, the company would officially resume work on February 7th (the 16th day of the first lunar month).
The Investor reporter repeatedly called TuanBao.com's CEO Ren Chunlei and the management team, but no one answered. However, TuanBao's administrative director He Xiaoling previously admitted to the media that TuanBao indeed faced financial issues.
The aforementioned employee from TuanBao's Beijing call center told the reporter that on January 29th, during the wage claim incident, TuanBao's CEO Ren Chunlei said the company had no money left and needed to repay investors first. He promised to personally contribute 200,000 yuan to provide each person with a 500-yuan compensation, but most employees did not accept this. Subsequently, about 30 employees filed for arbitration with the Labor Arbitration Committee.
According to the reporter's investigation, currently, employees from TuanBao in locations like Beijing, Tianjin, and Hangzhou have already applied for arbitration with the local Labor Arbitration Committee, with more employees planning to do so soon. Currently, there are approximately 400 people involved nationwide (with around 150 from the Beijing headquarters), with most earning a monthly salary of around 4,000 yuan. The estimated amount involved is between 3 million to 4 million yuan.
Reclaiming millions in debt, partner merchants consider legal action
Compared to the unpaid wages and compensations owed to employees, the debts owed to TuanBao's partner merchants are much larger.
Mr. Tan from Shenzhen is a ticket agent for the Splendid China theme park in Overseas Chinese Town, Shenzhen, and has previously collaborated with TuanBao.com. "Last year, we cooperated with TuanBao on Christmas Eve and New Year's Day scenic spot ticket group-buying business. We sold about 400 tickets, totaling more than 10,000 yuan, but we still haven't received payment from TuanBao. When I called the TuanBao salesperson who signed the contract, he said he had resigned and suggested calling customer service, but the customer service line was always unattended."
Mr. Tan told the Investor reporter: "I don't even know who to contact or how to find them. We've previously cooperated with other group-buying websites, and none of these issues occurred." Similar experiences to Mr. Tan's are common nationwide. According to a netizen named "TuanBao Migrant Worker" who exposed the situation on Weibo, there are thousands of such merchants.
Through investigations, the reporter discovered that merchants across the country have already formed QQ groups for rights protection, hoping to unite in defending their interests. Recently, the reporter joined some of these merchant rights protection groups. Currently, these merchants are tallying the total amount of debts owed by various merchants, hoping to unite more merchants for rights protection. Many merchants plan to take legal action if the debts remain unpaid.
E-commerce observer Lu Zhenwang told the reporter, "Currently, a creditors' group consisting of over 300 TuanBao merchants has been formed, with amounts involved mostly ranging from 10,000 to 30,000 yuan. It is estimated that TuanBao owes merchants alone over ten million yuan."
IT legal expert Zhao Zhanling told the Investor reporter: "Many TuanBao employees and partner merchants have approached me for legal consultations, even hoping for help in representing legal litigation. But currently, there's no good solution. If the regional branches have no assets, even if a lawsuit is won, it cannot be enforced because TuanBao is a limited company, meaning debts can only be repaid within the limits of the company's assets, and personal responsibility cannot be pursued against Ren Chunlei."
TuanBao's crisis emerged early, with little hope for fundraising
Facing collective debt claims from employees and merchants, TuanBao appears precarious. In fact, TuanBao's crisis had already appeared earlier, and the current unpaid wages and debts are merely continuations of last year's crisis.
In September last year, media reported that TuanBao was forced to lay off over 50% of its staff due to failed financing, resulting in more than 60 employees collectively protecting their rights.
An employee surnamed Bai from Caimi Laodao, a subsidiary website of TuanBao, told the reporter: "In October last year, TuanBao stopped online promotion, and subsequently, many employees began to resign."
For TuanBao, financial problems no longer require excessive verification. Recently, TuanBao's CEO Ren Chunlei posted on Weibo that he wouldn't flee and was currently raising funds in Shenzhen, claiming progress in fundraising. However, many industry insiders do not see TuanBao's ability to raise additional capital favorably.
"Ren Chunlei started looking for funds last year, and after searching for three or four months without success, how could he suddenly find funding now? After the TuanBao incident, I contacted some investors, all of whom showed no interest in group-buying anymore," Lu Zhenwang believed that TuanBao's claim of finding investment was just a bluff.
Wang Baoxin, executive secretary-general of the China Group Buying Development Guidance Center, told the Investor reporter that based on past experience, investors and banks share similar traits, favoring the rich and avoiding the poor. They won't offer assistance in times of need but will only add to prosperity. Now, TuanBao's chances of raising more funds are slim.
Pai Dai Wang analyst Li Chengdong also agreed with the above view: "Firstly, with no hope of going public and no prospect of profitability, the model of group-buying websites makes investors skeptical; secondly, investors mainly look at the U.S. market's response, and currently, the U.S. market isn't very interested in group-buying; thirdly, TuanBao has no advantage over other domestic competitors. Therefore, most investors would rather cut their losses and not invest further."
Although fundraising seems unlikely, rumors of TuanBao being acquired have recently surfaced. However, a vice president of a group-buying website who wished to remain anonymous told the reporter: "From the current perspective, TuanBao has no value whatsoever, making the possibility of acquisition extremely low. Moreover, everyone is struggling to survive the winter, and there's no spare money for acquisitions."
Did Ren Chunlei register a new company to escape liability?
After the TuanBao debt scandal broke out, informed sources revealed that Ren Chunlei had secretly registered another TuanBao company, intending to evade liabilities for employees' wages, merchant debts, and consumer advance payments after applying for bankruptcy of the original company.
Recently, the Investor reporter logged onto the Beijing Enterprise Credit Network. According to the query results, Ren Chunlei established the parent company of TuanBao, Beijing Yadagonghe Advertising Media Co., Ltd., on January 2, 2004.
On August 12, 2011, a company named TuanBao (China) E-Commerce Co., Ltd. was registered, with Ren Chunlei also serving as its legal representative. Interestingly, both companies' registered addresses are on the 17th floor of Qingyun Contemporary Building in Haidian District, Beijing.
Regarding this, Zhang Jin-hao, marketing manager of TuanBao, explained via Weibo that the establishment of TuanBao (China) E-Commerce Co., Ltd. was for the purpose of going public.
An employee from TuanBao's Nanchang branch told the reporter: "Before the incident, Ren Chunlei had already registered this new company under the name TuanBao. August was a subtle period for the group-buying industry, and registering a new company at this time must have had ulterior motives."
IT legal expert Zhao Zhanling explained to the Investor: "If a limited company goes bankrupt, debts can only be repaid within the limits of the company's assets, and personal responsibility cannot be pursued against the legal representative. Therefore, if TuanBao goes bankrupt, only the parent company Beijing Yadagonghe Advertising Media Co., Ltd. can be liquidated, and Ren Chunlei's personal assets cannot be pursued."
Many TuanBao employees told the Investor reporter that they suspected Ren Chunlei of transferring assets. In other words, Ren Chunlei might transfer TuanBao's existing assets to the newly established company to avoid legal risks.
However, Zhao Zhanling also told the reporter: "If it can be proven that before the establishment of TuanBao (China) E-Commerce Co., Ltd., Beijing Yadagonghe Advertising Media Co., Ltd. still had outstanding debts, then Ren Chunlei's transfer of assets from TuanBao to the new company would be invalid."
Many industry insiders stated that if Ren Chunlei truly acted this way, his future survival in the industry would be difficult. As of now, TuanBao's official stance on this matter remains silent.
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