Controversies

Debt crisis and bankruptcy reorganization of 'China's first listed private supermarket'

Due to rapid expansion and e-commerce shocks, Bubugao Supermarket fell into a debt crisis, closed stores on a large scale, owed suppliers' payments, and its stock was subject to a delisting risk warning. In 2023 a court ruled to accept its reorganization and brought in investors including Baitu and Wumart; in September 2024 the reorganization plan was completed. Its controlling shareholder, Bubugao Investment Group, underwent separate reorganization; in February 2026 its draft reorganization plan failed to pass a vote, and its equity was judicially frozen. The listed company's reorganization succeeded and the delisting risk warning was revoked; debt problems at the controlling shareholder level remain unresolved.