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South Beauty

Controversies

Controversies tied to this brand in public sources. A listing is not a finding of fault.

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  1. 2014

    Zhang Lan's Control Dispute With CVC and the Piercing of Her Family Trust

    After CVC acquired South Beauty in 2014, CVC accused Zhang Lan of financial fraud and applied for arbitration. In 2019, the arbitration ordered Zhang Lan to pay about USD 142 million plus interest; an earlier failed IPO bet with CDH also sparked controversy. In 2023, a court found that the funds in Zhang Lan's family trust were beneficially owned by Zhang Lan herself and could be enforced, and she was pursued for RMB 980 million in debt. Zhang Lan lost South Beauty.

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