SENIOR executives of a real estate agency have fled, carrying with them 14 company stamps and cash, Chinese-language media reported yesterday.
The vice president of the Tianjin-based Shunchi Real Estate, its newly-appointed legal representative, and Shunchi’s financial controller flew to Tianjin from Guangzhou on Friday night, leaving dozens of the agency’s employees unpaid, the Guangzhou Daily said.
Zhang Zhihe was appointed by Shunchi as its new legal representative Sept. 4 to take over the Shenzhen business, which is on the verge of bankruptcy. Zhang fired the general manager of the Shenzhen operation upon his arrival and began checking its books, sparking speculation among employees that the business would be closed down, the Daily said.
Shunchi set up its Shenzhen operation in December 2004 when 10 outlets were opened around the city. The expansion was part of a plan to make Shunchi a top real estate agent by market share in two years by opening 60 new outlets each year.
However, only six outlets were still in business this month, and Shunchi has lost over 20 million yuan (US$2.93 million) in the past five years, the Daily said.
A report produced by the financial controller, Wang Xiuli, on how to force employees to resign confirmed employee speculation Sept. 8, the China Finance Information Web site reported yesterday.
On Wednesday, Lei Hairong, vice president of Shunchi, flew to Shenzhen from Tianjin, and along with Zhang and Wang forced two accountants to open a company safe for stamps and cash before they left the company in Xihaian Building on Nanhai Thoroughfare in Nanshan District.
They were stopped by employees who called in the police. The police then referred the matter to Nanguang Subdistrict government office, which oversees the neighborhood.
Lei and Wang signed an agreement to pay back wages and compensation to the employees Saturday after the intervention of subdistrict government officials, the Web site said.
However, Lei, Zhang and Wang booked themselves a flight out of Shenzhen via Guangzhou on Friday night, leaving dozens of employees in the dark.
The Shunchi Group president Wang Xuequan said that his company is dealing with the matter and refused to give further details. (SD News)