2014 home business life suspension capital chain

In 2014, more than 10 companies flocked to IPO gates, showing a strong desire for funds, and the collapse of the capital chain is causing some companies to fall into the edge of losses or even closure. The capital is a double-edged sword that hangs over the head of the enterprise. How to skillfully use it to make it stable and development is worthy of consideration by the home industry. Blind expansion, inability to work properly, and desperation, may all result in a fat loss.

Many home-based companies are stuck in financial difficulties

For enterprises, once the capital chain breaks down, there may be a huge crisis. In 2014, China's home furnishing industry experienced an incident involving bankruptcy of the capital chain that led to the bankruptcy of the company. Among them, there were many well-known companies such as ultra-comfortable, led show home, and Wenhua Shen.

On the evening of December 12, 2014, the ultra-comfortable international home flagship store in the northeastern corner of Beijing's "Bird's Nest" was looted. The entire five-storey furniture showroom with an area of ​​9,000 square meters was ransacked. This ultra-comfortable hotel created 12 years of import. The furniture sales platform is therefore facing closure. Sadly, it is not people's thief who robbed the goods, but the creditor who holds the contract, who is too comfortable and unable to repay the huge sum of money, and is credited by the creditor.

Just on the first day of super-comfortable store goods being robbed, on December 11th, the leader of the show home in Jinan Ou Yada Home Plaza suddenly heard the news of "the boss runs the road," after which many stores across the country also closed one after another, general manager Liu Dongli Also almost lost. Lead show home mainly Italy, the United States and other first-line home brands, the agency's high-end brand up to more than 60, but because the funds can not keep up, follow-up development into a bubble.

Also in the last month of 2014, Wen Huashen, a well-known household enterprise in Guangdong, also revealed news that the boss Xiao Qiong was in arrears due to lack of funds. It is alleged that the Wenhuashen Furniture Factory has owed huge debts and has made it impossible to continue its business.

As early as the first half of 2014, the home industry had already been in a state of shortage of funds. Some well-known companies had been unable to sustain the funds because of the difficulties, either because the factories were closed or the channels were back against the water. They were suspended due to financial difficulties.

The home industry suffers from financial hunger and thirst

The hunger for funds was particularly outstanding for the home industry in 2014. In particular, on April 18th, the IPO was re-opened and restarted, allowing many companies to see the dawn of the market, Red Star Macalline, Qumei Furniture, and Gu Jia. More than 10 home furnishing companies, such as Home Furnishings, Hollywood, and Op lighting, have flocked to the front of the market to compete in the capital market, and they seem to be the driving force for the future development of these companies.

For home companies to see the listing hope is that in 2014, after many years of waiting, East Yi Risheng finally became the "home improvement first stock", successfully entered the list of listed companies. However, only at the end of the year, only a few companies such as Hollywood and Le Cordon Bleu passed the initial approval, leaving companies that are standing at the market's threshold to be quite disappointed and discouraged.

In fact, the cost of going public on the road far exceeds the scenery of the bell. If it is not careful, it may fail to be listed, and it will also drag the company down. One of the typical examples is Huayuanxuan. On July 30, 2014, Huayuanxuan Furniture Factory exposed the workers’ paycheck incident. The fuse was its shortage of funds and it was necessary to close the Shenzhen factory, causing the employees to lose their jobs and receive no pay. The insider’s failure to get Hua Yuanxuan into the fund crisis was the second time it failed to go public. As a result, VCs withdrew a large amount of funds, disrupted their supply chain, owed more than 30 million yuan in debt, and factories could not produce normally.

For companies that are actively seeking for listing, they may not really think about how the funds are used. They may also have the suspicion of "circulating money." In July 2014, the home companies that sprinted to the IPO were collectively “stopped from reviewing”. The important reason was that the listing application documents were incomplete. Among them, the industry's well-known Ya Zhen furniture, prospectus ** said that more than 60 million yuan will be listed to raise funds to enter the e-commerce, and Ya Zhen furniture network sales are currently zero, to build an independent network platform to do electricity supplier is the industry People think that "do not fly" is just a gimmick to increase the listing.

Avoid blindly expanding and not doing business

In 2014, the phenomenon of default on wages and bosses' running of home companies frequently occurred. Some once-in-the-money companies suddenly lost sight of their shortages because of lack of funding. The reason is that their managers have lost their strategies, are doing nothing and blindly expanded.

The dilemma of ultra-comfortable international homes, the industry believes that it is the misuse of its capital strategy. As a company that manages imported home furnishing brands, it should adopt safer channels. It should not be easy to put chips on private lending, especially for those who are known for high interest rates, and eventually become slaves to capital. Wen Huashen's "collapse" is because it has turned funds into real estate with greater capital demand. Due to the failure of real estate investment, it has occupied a large amount of funds and the main business has lost its basic survival conditions. On June 21st, the famous home furnishing brand Fuzhi Island was exposed to a crisis in the company's capital chain due to arrears of nearly 10 million yuan in wages. According to people familiar with the matter, Fuchi Island was also investing money in real estate. main job.

Failure to do business is a stumbling block on the road to business development. Blind expansion can also lead to failure in the application of funds. From the prospectus published by these listed companies that are currently standing in front of the IPO gate, the channel expansion has become a fund-raising hotspot. Experts in the industry said that the listing of funds to achieve the expansion of reproduction, but companies also bear a major responsibility for profits. Listing is a quick way to get capital, but it is also like dancing on the tip of a knife, beautiful and dangerous. Because if the company encounters unexpected events on the road to listing, it may be unable to recover. And those who rely on the listing of circulated money are even more undesirable because getting capital is only the first step. How to make good use of listed capital for sustainable development is the key.

Another person in the industry believes that no matter from which channel to obtain funds, it is crucial to be able to effectively use funds. The most important thing is that home companies must do what they can, and according to their own body size, they must raise funds in a modest manner, and they must also realize awareness. To the risk of blind expansion, otherwise it will dig itself into the difficult financial crisis trap.