Assets of Xiamen Northpole Enterprise Co., Ltd, manufacturing headquarters of one of the world's top outdoor products manufacturers, were seized by the government after hundreds of suppliers surrounded the company's plant in Xiamen's Jimei District on 8th March, reports Strait Herald.
Over 200 suppliers surrounded the company's Jimei plant on 8th March after the company's financial problems were exposed. The suppliers guarded all the exits of the plant for fear that the corporate representative would flee, leaving their debts unpaid. All the staff including the male ones had been told not to come to work on International Women's Day.
Over 200 suppliers surrounded the company's Jimei plant on 8th March after the company's financial problems were exposed. The suppliers guarded all the exits of the plant for fear that the corporate representative would flee, leaving their debts unpaid. All the staff including the male ones had been told not to come to work on International Women's Day.
Workers gathered outside Xiamen Northpole's plant for unpaid salaries (internet photo)
Traffics at a crossroad near Xiamen Northpole's plant in Jimei district were blocked by the workers and suppliers who asked for their unpaid salaries and debts (internet photo)
A supplier from Shanghai surnamed Chen told a reporter that the company has delayed their payments since July last year, and has owed them more than 20 million yuan so far. Staff of the plant also said their February wages along with their year-end bonuses in 2011 were still unpaid. The company, which owns two manufacture plants in Xiamen, has over 2000 staff.
The government has stepped in to investigate the matter and sealed up all the company's assets in Xiamen. The passport of the company's CEO has also been seized. Some of the workers' wages have been paid after the intervention of the government.
A supplier said the company is now insolvent and its two factories in Xiamen may have also been mortgaged to the bank. Sources said the company owes "huge debts" to its suppliers possibly due to the delay of its products' time to market by retailers and dividends to shareholders, which broke its capital chain.
Xiamen Northpole is controlled by the Hong Kong-headquartered Northpole Inc, which is one of the world's largest manufacturers of camping tents and related outdoor products. The US company's tent products take up some 65% of the market in America and 38% of the world market. It's also the direct production supplier to Wal-mart, Kmart, Sears, Carrefour and other world-renowned retail giants.
SOURCE: WOXnews.com
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