NEW YORK • Mr Zhang Jindong has stepped down as chairman of Chinese retail giant Suning.com after losing control of his firm following a government-led bailout.
The company announced his resignation in a filing with the Shenzhen stock exchange on Monday, adding that he will be appointed honorary chairman to guide the firm's future growth.
Mr Zhang, 58, lost control of Suning when the business sold a 16.96 per cent stake to a state-backed consortium for a US$1.36 billion (S$1.8 billion) bailout last week.
The group of investors, led by the Nanjing state asset management committee and the Jiangsu provincial government, also includes Alibaba Group Holding, appliance maker Midea Group, smartphone maker Xiaomi and TCL Technology Group.
Mr Zhang's resignation and the company's rescue is the latest chapter in a remarkable rise and fall for a tycoon who was once one of China's richest individuals with a fortune of more than US$11 billion as recently as 2015. He not only built a vast retail group that gained backers including Alibaba, but also helped lead China's global football ambitions abroad by purchasing a controlling stake of Italian team Inter Milan in 2016.
He founded Suning in 1990 and started out selling air-conditioners. He transformed the company into a retail empire with stores in major Chinese cities. In 2015, Alibaba announced a US$4.6 billion investment in a bid to combine its online capabilities with Suning's bricks-and-mortar expertise.
Suning.com had a market value of about 52 billion yuan (S$10.9 billion) before its trading halt. The retail business was weakened by a slowdown in spending during the pandemic. Concerns about its cash flow intensified in September, when Mr Zhang waived his right to a 20 billion yuan payment from property developer China Evergrande.
The stock tumbled last month after a Beijing court froze three billion yuan worth of shares held by Mr Zhang - representing 5.8 per cent of Suning.com - and creditors agreed to extend a bond for Suning Appliance Group, which is owned by Mr Zhang and fellow co-founder Bu Yang.
The company said Mr Ren Jun, a board member, will perform chairman duties temporarily.
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