Alibaba Backed Group Stars Express is Bankrupt

Posted by Joachim Bartels | Mar 10, 2012 | Alibaba, China, E-Commerce, Uncategorized | 0 |

Alibaba Group-backed courier firm, Stars Express, announced the company has filed for bankruptcy. Stars Express was previously a delivery service provider listed on Alibaba’s B2C arm, Taobao. According to a statement release by Stars Express’ founder, Chen Ping, his personal investment of US$7.9 million as well as Alibaba’s US$11 million investment have both been lost.

Alibaba first announced the purchase of a minority stake in the Beijing-based courier in March 2010, but so far Alibaba has not commented on the bankruptcy. Industry insiders believe over-expansion and inadequate franchising experience was the cause of the bankruptcy.

Source: Business Strategies Group Hong Kong

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Joachim Bartels

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