Secoo, once China’s top online luxury goods retailer, files for bankruptcy amid waning consumer demand
- Beijing Siku Shangmao, the corporate entity of the Nasdaq-listed firm, filed a bankruptcy case in a Beijing court, according to a notice on Wednesday
- While Secoo caught the early wave of luxury e-commerce in China, it made several business decisions that deviated from its original mission
Secoo, once China’s top online luxury goods retailer, has filed a bankruptcy petition for the second time this year, showing how difficult it is for some companies to survive amid waning domestic consumption power in the country.
Beijing Siku Shangmao Co, the corporate entity of the Nasdaq-listed company, filed a bankruptcy case with the First Intermediate People’s Court of Beijing Municipality, according to public records database Tianyancha on Wednesday.
In January, after several domestic media outlets reported that Secoo had filed for bankruptcy in Beijing, the company retracted a petition to wind up, according to a notice on China’s bankruptcy disclosure platform.
Secoo did not immediately respond to an emailed request for comment.
Founded in 2008 by Chinese entrepreneur Richard Li Rixue, the retailer quickly gained backing from private equity firms. It grew from a second-hand handbag shop into China’s largest luxury goods exchange for individuals, with a 2017 initial public offering on Nasdaq raising US$140 million.
Its stock fell to US$0.27 in New York trading on Wednesday, compared to a high of US$14.6 four years ago. Since late last year, Secoo’s shares have been trading below US$1.
On December 17, 2021, the firm received a delisting warning after its closing bid price for 30 consecutive business days fell below US$1 per share, Nasdaq’s minimum bid price requirement.