Alibaba-invested Courier Firm Stars Express Bankrupt
iFeng Tech, 3/05/12
Chen Ping, founder of Beijing-based express delivery service Stars Express, has revealed in a text message that the company has gone bankrupt, with investor B2B e-commerce company Alibaba.com (1688.HK) losing RMB 70 mln and Chen losing RMB 50 mln.
According to a logistics industry insider, Stars made repeated overtures to be acquired in the past several months, has shuttered its operational hubs nationwide including those in Beijing, Tianjin, Shanghai, and Shanxi, and sold its vehicle fleet and computers and other office equipment.
iFeng Tech could not reach any Stars representatives at either the main switchboard or regional extensions, though the website is still online. Alibaba.com was unavailable for comment.
Stars Express began operations in March 2009, with founder Chen Ping holding a 51% stake in the company, while the remaining 49% was held by senior management and two outside investors. Chen founded Stars Express in late 2008 when he was 50 years old, after selling RMB 20 mln in shares in Beijing-based logistics firm ZJS Express, which he also founded.
Editor's Note: For more information on this topic, please see "Alibaba to Invest in Express Delivery Company," MD 3/18/10 and "Alibaba Invests in Beijing Delivery Firm," MD 3/30/10 issues.
Keywords: Chen Ping B2B e-commerce Internet Alibaba.com 1688.HK Stars Express logistics
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