Marbridge Daily

<- April 17, 2012 ->

Rumor: Vancl's Rufengda Begins Major Staff Cuts

Securities Daily, 4/17/12

A former staff member of the Fujian branch of Rufengda Express Delivery Service, Chinese B2C clothing website Vancl's Beijing-based logistics and distribution network subsidiary, has reported that Rufengda has begun major layoffs as Vancl's business suffers. Another former employee disclosed that Vancl CEO Chen Nian intends to dissolve the entire Rufengda business to save costs, while Vancl vice president and Rufengda general manager Li Hongyi has voiced his desire to preserve at least a portion of Rufengda's local branches.

The above-mentioned former Rufengda Fujian employee reported that currently Rufengda has approximately 150-160 distribution sites throughout mainland China, and that the cuts may result in the shutdown of many of those sites that have not been profitable. The former Fujian employee himself was suddenly asked to leave at the end of March. Rufengda Fujian manages only two sites, one in Fuzhou and one in Xiamen, with a total of approximately 50 employees. If in the next two months business conditions do not improve, the two sites will likely be dissolved before the end of June.

On April 16, a spokesperson from Vancl PR told China's Securities Daily that Rufengda's business has indeed undergone adjustments, and that its less efficient distribution sites will be closed, while the construction of sites in large city centers will be the new focal point.

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