Chinese luxury retailer Secoo files for bankruptcy for the second time

(Source: Secoo)

Nasdaq-listed e-commerce luxury goods retailer Secoo has reportedly filed for bankruptcy with the First Intermediate People’s Court of Beijing Municipality – seven months after its last filing, according to Tianyancha. 

The company has not yet responded to media enquiries for further information. 

According to LegalDaily, earlier this year, Secoo filed for bankruptcy on the grounds it was unable to pay off its debts. The petition was subsequently withdrawn.  

Last week, the company lost a legal dispute with Prada, where the luxury house demanded Shanghai Jiading District People’s Court freeze more than US$1.6 million of Secoo’s assets for a period of one year. Prada is not the only company that Secoo has contractual disputes with.

According to Secoo’s 2021 financial report, the company recorded a 48 per cent year-on-year drop in revenue last year, experiencing a net loss of $88.8 million – more than six times higher than its loss in 2020. 

The company made its Nasdaq debut in 2017, raising about $140 million. Secoo received a delisting warning from the stock exchange last year after the company’s share price dropped below $1 for 30 consecutive business days. 

Established in 2008, Secoo is known as one of China’s leading online luxury goods retailers, operating experience centres across Beijing, Shanghai, Chengdu, Qingdao, Tianjin, Xiamen, Hong Kong and Malaysia, per the company’s website.

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