Update | Marital spat between BaWang co-founders heads to court as company’s stock plummets

Wan Yuhua, the wife of BaWang’s founder Chen Qiyuan, said she is suing to liquidate the private entity that controls 60 per cent of the 28-year-old company, and redistribute the BaWang shares to other shareholders.

A hearing at the High Court is now scheduled for February 28, an announcement said.

“As my ex-husband repeatedly made decisions that are harmful to my interests, and the interest of the holding company, I have lost any trust in him,” Wan said Wednesday during a press briefing in Hong Kong. “I will apply to liquidate the holding company and sell all the assets for distribution to shareholders.”

Chen, the 55-year-old co-founder and chairman of the Guangzhou-based company, filed for divorce on September 12, Wan said, but have been separated for more than two years.

The public spat adds to BaWang’s woes, which has not reported a profit since its 2010. The company, whose shampoos were previously endorsed by celebrities such as film star Jackie Chan and singer Faye Wang, won a HK$3 million (US$384,000) settlement last year against Next Magazine for publishing a defamatory article about its products.