Consumer services

Struggling luxury e-commerce platform Secoo denies desertion reports

Beijing Business News reported on Aug. 17 that the headquarters of Secoo, a luxury e-commerce platform based in the center of Beijing’s business district and once filled with luxury goods, is now empty. Additionally, some security personnel said people started moving goods out six months ago and floors one through four were now empty, leaving only the fifth floor occupied by employees. In addition, Secoo’s logistics warehouse center, YH Global in Beijing Economic and Technological Development Zone, was also released.

As for the concerns, Secoo told national media today that this information is not true. The company said: “Our office occupies only one floor of the building, which is the fifth floor. At present, the office area has not been reduced and several hundred people are working normally. Media reports that the first floor has been emptied. In fact, it used to be the company’s luxury goods showroom and warehouse. At present, we have moved all luxury products to a professional warehouse for storage and delivery. »

Consumers have repeatedly denounced Secoo recently. According to data from Black Cat, a consumer services platform in China, more than 17,000 online complaints have been filed against Secoo, most with keywords such as “no delivery” and “no refund”. . However, users can still place orders on the Secoo app normally, and various preferential activities are still available.

Secoo was established in April 2009 with a registered capital of 10 million yuan ($1.48 million). In September 2017, it went public in the United States. Secoo focuses on luxury goods including bags, watches, clothes, jewelry and other items.

However, its 2021 report showed annual revenue of 3.132 billion yuan, down 48% from 6.02 billion yuan in 2020. Meanwhile, net losses reached 566 million yuan, that’s six times more than in 2020. As of August 17, Secoo’s market value was just $17.64 million, having shrunk nearly 98% from $770 million at its peak.

Additionally, Secoo has filed for bankruptcy twice in a year and has been embroiled in hundreds of sales contract disputes so far in 2021 – in most cases it was the defendant. On July 27, PRADA Fashion Commerce (Shanghai) Company Limited requested the freezing of the ownership of more than 11 million yuan and the corresponding value under Shanghai Secoo E-Commerce Co., Ltd., a wholly owned subsidiary of Secoo . The application has been set up and will last for one year.

In March 2022, Secoo announced that it had signed a $175 million refinancing agreement with Great World Lux ​​Pte. However, according to Beijing Business Today, Shen Meng, chief strategist of Guangke Management Consulting (Guangzhou) Co., said the refinancing was just to restructure existing loans under new terms to some extent. For Secoo, it can delay the debt repayment pressure, but it cannot fundamentally reduce the debt burden. Secoo’s outlook now looks bleak and it is difficult for investors to change their expectations.

SEE ALSO: Global SaaS E-Commerce Company Dianxiaomi Secures $110M in Round-D Funding