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