Gearbest is known to pretty much everyone who has ever bought goods from China. A few years back, it was one of the most popular and also the biggest Chinese online shops. However, for the last three years, this store has rather stagnated, and it’s been overtaken by Banggood, Geekbuying, DHGate, or TradingShenzhen.
About Gearbest, once the most reliable seller, negative reports also spread at the beginning of the year 2021 about poor customer support and especially not paying out their affiliate partners. Everything was sealed with the shutdown of the website.
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The gearbest.com website is already down
After the previous reports about major problems with the online shop’s parent company, Gearbest, Shenzhen Globalegrow E-Commerce Co, and their ongoing bankruptcy proceedings due to their inability to repay their debts, the website www.gearbest.com has been completely shut down. From now on, you can’t buy anything here and you won’t be able to view any product.
The Chinese giant tried to save its sales by selling its next company Patoxun, which it sold in March to several companies, including Xiaomi, for 2.2 billion yuan. But that wasn’t enough for Globalegrow to avoid bankruptcy proceedings and to save its Gearbest e-shop.
The company also owns other very well-known fashion online shops like Shein, Zaful, and Rosegal, but they continue to work without any problems.
Gearbest has had a really bad reputation lately, and its parent company likely decided that closing this long-standing chapter of its e-shop was the best solution.
Original article from 11. June 2021:
The company that owns Gearbest is facing bankruptcy
The platform is expecting difficult times in the near future, and its future is uncertain. Reports coming from China say that its parent company, Shenzhen Globalegrow E-Commerce Co, is facing bankruptcy.
The case is already in court in the province of Guandgong and is currently classified as an assessment of bankruptcy. The applicant is Shenzhen Nanshan, a subsidiary brand of a Chinese industrial and commercial bank. The opposing party is the company Globalegrow, i.e., the owner of Gearbest.
In 2018, Gearbest was the biggest and most reliable Chinese online shop. We managed to visit them as well.
The company claims it received no legal documents from the court intermediary in Shenzhen. It also added that it is actively communicating and negotiating with the bank branch while working on securing new funding. It hopes the dispute with the bank will be resolved as quickly as possible.
Back in March this year, the company already sold its subsidiary company Patoxun for the amount of 2,2 billion Chinese yuan with all of its brands. It looks like this capital still isn’t enough. New investors in Patoxun included brands such as Xiaomi, Shunwei, CDH, Quantum Yuedong, Xiyin International, and others.
Top executives of the company have already resigned
Just one month after this sale, ZAFUL began operating independently as well, which was another Globalegrow subsidiary. The chairman of the board and also the company’s CEO, Xu Jiadong, resigned in May. Allegedly for personal reasons.
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Together with the CEO, two members of the supervisory board also resigned – Li Jie and Zhou Chunyan. They were joined by the head of a department called “Internal Audio”, Wanf Xiaoyu. The departures of these other key people suggest that the director’s resignation didn’t have to do with personal reasons at all, but rather the company’s poor financial situation.
We don’t know yet how this whole situation will develop. An e-shop like Gearbest would be a shame, so we hope Globalegrow finds the funding it needs. Don’t forget to keep following us. As soon as we know more about what’s going on, we’ll share updates on our website.
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