La Charbelle Delisted From The A Shares And Suspended Trading On March 31

Rachabel delisted from a shares.

On March 30, La chapel released its 2021 financial report. According to the data, the operating revenue of La chapel last year was only 430 million yuan, which was 76.36% lower than that of 1.819 billion yuan in 2020, with a net loss of 821 million yuan.

We have received a letter from Shanghai label Co., Ltd. on the supervision of the listing of Shanghai label Co., Ltd. It pointed out that the company's A-share shares have touched the conditions for termination of listing and will be suspended from the opening of the market on March 31. At present, La chapel A shares have been delisted. The Hong Kong stock price is HK $0.405 as of the time of publication, with a total market value of HK $222 million.

Founded in 1998, La chapel was once known as "the Chinese version of Zara". The company landed in the Hong Kong Stock Exchange in 2014 and listed in A-share market in 2017. It is the first clothing brand in China to be listed on both the Hong Kong Stock Exchange and A-share.

This once glorious company, the performance is declining. "Even if the A-share delisting will not affect the normal operation of the company, the company will still forge ahead, expand its business, and strive to achieve the transformation of quantity and quality," La charbell wrote in the "future outlook" section of the financial report.

The crisis and challenges it faces are far from over.

La charbelle's delisting is well documented.

On November 23 last year, Xinjiang lashabel Clothing Co., Ltd. issued an announcement, which showed that the creditors of the company, Jiaxing Chengxin Garment Co., Ltd., Haining mangrove Clothing Co., Ltd., and Zhejiang Zhongda Xinjia Trading Co., Ltd., submitted to the court the "bankruptcy application" for bankruptcy liquidation of lashabel.

The next day, a topic entitled "La chapel was applied for bankruptcy liquidation" was launched into microblog hot search. At the same time, the official flagship store of tmall also swarmed into many consumers who placed orders. (the world's online business once reported that the women's clothing giant with a revenue of 10 billion was on the verge of bankruptcy, but its live broadcasting rooms were overcrowded.) the data show that before the hot search, the average number of watching in the brand's live room in that month was less than 100000; On November 24, the number of viewers exceeded 200000; On November 26, it reached 610000.

Figure announcement of Xinjiang La Chabel Clothing Co., Ltd

But it is difficult for consumers to solve the urgent need of La charbell.

On the one hand, it will not last for a long time. According to the world's online business, in March this year, the daily average number of live broadcast viewers dropped to less than 100000.

On the other hand, La chapel's "Rome wasn't built in a day.". Since the listing of a shares, the company has been losing money for four consecutive years, with a total loss of 5 billion yuan. It was the first financial loss of 0.6 billion in 2018; In 2019, the revenue of La chapel decreased by 24.66% compared with the same period in 2018, and the net loss expanded to 2.166 billion; In 2020, the operating income of La chapel decreased by 76.27% year on year, and the net loss was 1.841 billion yuan.

Due to litigation, arbitration and other reasons, part of the bank accounts of La Chapel were frozen. As of February 28, 2022, a total of 146 bank accounts of La chapel have been frozen, with a frozen amount of about 104 million yuan. Due to the company's involvement in litigation cases and other influences, a total of 17 subsidiaries of lashabel were frozen, involving a total amount of 681 million yuan.

In the enterprise investigation, there are 158 judicial cases as defendants, including 41 cases of bill recourse disputes, 23 cases of processing contract disputes and 17 cases of sales contract disputes. According to the observation of "world online merchants", most of the disputes involved are clothing companies that provide processing and production. This also verifies that there are many problems in the production supply chain of La chapel. For La chapel, it's only a matter of time before delisting.

Map enterprise check

Nowadays, in the core business circle of the first and second tier cities, it is almost impossible for consumers to find the image of La chapel stores. Taking Hangzhou as an example, the brand stores are mostly distributed in the shopping malls and blocks on the edge of the city, with limited radiation range, and the target users are mainly the surrounding residents.

Such a scene was almost unimaginable many years ago.

According to the company's prospectus, from 2014 to 2016, the number of La chapel stores increased at an average annual rate of about 1000. By 2014, it expanded to 6887. In 2018, the number of stores has risen to 9448.

Behind the offline stores are the continuous tangible costs of rent, personnel, water and electricity. The huge pressure of the capital chain hindered the ambition of "blooming everywhere". By the end of 2019, the number of operating outlets of La chapel has decreased by 4391 compared with that at the end of 2018. By the end of 2021, the number of online stores operated by La chapel had dropped sharply to 300.

Lashabel, which is aggressively attacking the offline market, has been developing its online channels in the past few years. In 2015, it spent more than 200 million yuan on the e-commerce business of its parent company, which became a big e-commerce company in 2015.

According to the 2021 financial report, the online channel only accounts for 3.8% of the total revenue of La chapel. For a brand in the new era of consumption, not seizing the online market, to a large extent, means not seizing young users.

Besides channels, products are also one of the reasons why La chapel has gone into decline. At the beginning of its establishment, La charbelle's style was relatively unified, which was romantic and sweet French style "Shaoshu". In the era of less market choice and more aesthetic convergence, this style has indeed stepped on the aesthetic needs of women with certain consumption ability in the first and second tier cities.

But with the passage of time, the aesthetic style continues to refine, but La chapel in the design did not show too much innovation and progress. The official flagship store of tmall brand has more than 10 million fans, and the styles are mostly common basic models. The price band of several SKUs (minimum inventory unit) with the highest sales volume is concentrated at 150-200 yuan. Although the price is not high, it is easy to find a replacement version in other stores no matter which one you carry.

Sportswear, lace shirts, business suit pants... The rich SKU did not bring more attention to La chapel, but let it in the swing, lost its original style positioning, lost the core consumer groups.

In addition, La Chabel's quality control and after-sales service are also criticized by many consumers. On the Internet platform, there are not a few comments like "stepping on the thunder, all the thread ends", "putting on the cuff twice and kicking off", "returning and changing three times because of quality problems". In addition to style, quality, after-sales, the price of the product is also very unstable. The price is too high and the discount is too fierce, which makes consumers lose their trust in the brand price system.

In terms of strategic deployment, La chapel has been taking the mode of multi brand development. Since 2012, the company's category from women's wear, step by step to children's clothing, men's wear. In the peak period, including the main brands, La chapel included puella, 7 12 brands such as modify and ushgee.

But apart from the early established main brands La chapel and puella, other brands did not attract much attention. Even the two best developed brands have similar style positioning and high user overlap. The price of the product of chaela is also slightly lower than that of puelle.

Low unit price brands are difficult to leverage the market with high consumption power and high viscosity.

La charbelle tried to improve its brand positioning by acquiring French clothing brand NAFNAF SAS in 2018, reaching new domestic consumer groups, and also hoped to contact overseas markets with nafnafnaf SAS.

Less than a year after the acquisition of nafnafnaf SAS, La chapel opened its first store in the Chinese market on the fifth floor of Shanghai ganghui Plaza, which is full of land and money, and set a target of opening 500 stores in five years. The store's clothing includes the nafnafnaf high-end collection les collectionistas and products designed specifically for the Chinese market.

But the acquisition did not bring the spring as expected, and the tight capital chain even accelerated the decline of La chapel. In 2019, nafnafnaf SAS has a large loss, and its ability to continue as a going concern is facing significant negative impact. By may 2020, nafnafnaf SAS was ordered by the court to start judicial restructuring due to its inability to pay off the debts of suppliers and relevant governments. As a result, rachabel lost control of nafnafnaf SAS.

Even so, the company still does not give up the mode of multi brand parallel, in the latest financial report information, put forward the business development strategy of "one brand, one policy, primary and secondary division". Now there are 5 women's wear, 1 children's wear and 2 men's wear brands. In addition to the narrowed offline stores, its main brand La chapel also has a tmall flagship store with more than 10 million fans, as well as puella, 7 Several tmall flagship stores with more than 3 million fans, such as modifier.

Without capital, lashabel may be able to go light. In today's era of emphasis on private domain operation, if lashabel can run the tens of millions of fans in tmall's store, and use its products and activities to dig deep into user value, it may also find a new way.