NVC Lighting hit by strike threat
Suppliers and distributors have reportedly cut deals with the Hong Kong-listed lighting manufacturer to support former chairman
Suppliers have reportedly stopped dealing with Hong Kong-listed NVC Lighting amid growing tensions between the board and management.
The company's management told an analyst, who declined to be named, that although some suppliers have stopped supplying NVC, the lighting manufacturer can source components from other suppliers.
On July 12, some of NVC's suppliers and distributors, as well as most of its senior management, met members of NVC's board, the company announced on July 18. At that meeting, the suppliers, distributors and management demanded that former NVC chairman Wu Changjiang be re-elected as chairman and executive director of the firm, some members of the management and distributors be appointed to the board while other members of NVC's senior management resign.
"The members indicated that if the board failed to satisfy their demands, [they] would take further action. Since these meetings, members have started taking action which adversely affected the company. These included strikes at two of its plants and its Chongqing office and the suspension of further orders by distributors," said the company.
On May 24, Wu resigned as chairman, CEO and executive director of NVC for "personal reasons", the company announced on May 25.