O2O Sample: Street Library net investors fail to draw funds to the Bureau

Silicon Valley August 2 comprehensive hearing August 1, after 3 months of suffering, the Street Library Network CEO Pan again through the assets of the way, issued nearly 30 employees wages, and another 50 people's wages will be issued in place on August 2.

Yesterday (August 1), "Daily economic news" reporter has 5 times to call Pan mobile phone, the other side or show is in the call, or directly hang up. And the president of the Street Library network director Li said to reporters: "At present, Pan is always around to raise funds, ready to August 2 before the afternoon, pay staff June wages." There are about 80 employees left in the Street library network. ”

It is also understood that since March this year, street network 8 city outlets have been reduced to Beijing, Guangzhou, Wuhan 3, the number of employees from about 300 people reduced to today's more than 80 people, in the process of discouraging staff, the company caused a lot of labor disputes, once triggered "Pan volume absconded" rumors.

Street Library NET, this so-called May 2012 to obtain two PE a total of 100 million Yuan capital injection, February 2013 B round refinancing 200 million yuan of the company, in April 2013, why would be caught in the capital tight, slimming the passive situation of self-help?

To sink into the crisis of capital chain

April 25, 2013, the board of the Street Library network finally made a Pan and many senior executives are unexpected resolution: to persuade employees, shrinking business city, the reason is that funds can not be in place.

To this day, the street Library Network 8 branches in the country has more than 300 employees. Due to the beginning of the year, Guangxi Huaxia Morgan Equity Investment Fund Management Co., Ltd. (hereinafter referred to as China-Ha Morgan) 's 200 million-yuan investment agreement, the company management in February and March business expansion plan, and in accordance with the 100 million investment plan to layout. However, until the end of April, Huaxia Morgan's investment has been delayed in place, the company into a financial crisis.

In this respect, the street network has made a lot of efforts to persuade, from March to May, the staff from nearly 300 people reduced to more than 120 people. After May, the remaining 80 employees will be left alone by the end of July. The moves have led to serious protests among employees, and criticism has been heard from social networking sites such as microblogs.

May 2013, a netizen on the network issued a "Street library network owes me the annual salary" of the post, the poster claiming to be the staff of the Street Library network. According to its exposure, into the company said is the annual salary system, each month deducted thousands of yuan, this will be reissued later, can be dragged not to.

July 10, a media report said, the street network capital chain broken, once financing 200 million yuan, the value of 920 million yuan, was once the industry known as the "Dark Horse" of the street network is now a crisis, the team fell apart, the investment side withdrew capital, the company was struggling.

However, earlier Pan to the daily economic news reporter that the company is on the contraction front, the adjustment strategy phase. Since then, Pan's phone is in an unattended state.

According to a street network, a senior executive disclosed that the company has been in the stage of burning money, has not yet returned to profitability. And 200 million yuan investment is not in place at all, the original shareholders refused to add additional investment, but did not inform the company management funds have not been able to protect, instead of the management of this year to increase market input, according to the original market layout to implement expansion plans.

In fact, the Pan is based on a 100 million-yuan layout to operate, the first quarter of this year, the funds began to tense. By March, the board was still Gao, promising that the money would be in place soon. But in the April, it finally lasted. "said Pan.

In the determination of Huaxia Morgan no longer to invest in the case, the Board made a decision to shrink business. Huang Jinlong, chairman of the Street Library network, said shareholders would first give 6 million yuan, and then add 4 million yuan. "If you invest so much money, how can it be impossible for the company to do it?" Huang Jinlong to reporters.

But since May, the Street Library network has closed Shanghai, Shenzhen and other city branches, leaving only Guangzhou, Beijing, Wuhan branch.

"After 2 years of exploration, when the thinking is clear, there is no money," he said. "Pan claims.

Each of the two sides holds a speech

January 26, 2013, Pan in Beijing Pangu Grand Panorama held in the "Street Library 2012 annual Meeting and Value Assessment banquet", formally to the industry announced that B-round financing again received 200 million capital injection, and stressed that "O2O is to achieve virtual economy and real economic integration of the best way to interact, and data marketing is the new profit growth point of the service industry in the next ten years. ”

However, 3 months later, the Street Library network into the capital tense, shrinking most of the city branch of the situation.

"200 million yuan investment has not been accounted for, which is the real reason why wages are not in place." Now rumors outside the boss of the money to flee, it is nonsense, because there is no volume can be rolled. "The chief manpower director of the Street library Network told reporters that this January 26 and the Street Library network signed the Huaxia Morgan, and then did not invest in Money."

It is understood that November 2012, Huaxia Morgan and Huang Jinlong talked about an investment intention, the two sides since November 2012 contact, to January 2013 to discuss cooperation, the investment negotiations by the Huang Jinlong-led.

"Daily economic news" reporter learned that Huaxia Morgan and the U.S. consortium Morgan Stanley (27.92,0.71,2.61%) is not related. Huaxia Morgan is a set up time for December 26, 2012, registered capital of 10 million yuan, registered for the Fangchenggang Port Road 4th, Dongxing Avenue, Fangchenggang Building Materials Market Investment Co., Ltd. 3 floor, 301 room of the new company.

Huaxia Morgan and the company signed a strategic cooperation intention agreement, to invest 200 million yuan, to swap 30% of the shares. But before signing the investment agreement, Huaxia Morgan did not do due diligence.

In fact, I only want to raise 50 million yuan, but the other side claims to vote 200 million yuan. "Pan said. It is also understood that Huaxia Morgan is a private equity fund, usually investment of at least 100 million yuan.

January 2013, the street storehouse net did the third party valuation, the company value is 920 million yuan. As the investment agreement was signed, chairman Huang Jinlong insisted on announcing the investment in the conference. January 26, the company invited, including Qiao Jiangnan, Hunan and Hubei, such as the situation of customers witness signing.

However, since the press conference, Huaxia Morgan's funds have not been accounted for. In this respect, Huaxia Morgan Chairman Shei Zanjun explained, "We only signed a framework agreement to require them to provide due diligence materials, but the other side has not provided." We abandoned this investment in the absence of a legal instrument providing any financial data and financial reporting. ”

In this respect, Huang Jinlong agreed, "fund companies to do due diligence on the street library, but Pan refused to hand over due diligence information." We feel that he has concealed the whole operation and the finance of the company. ”

Huang Jinlong also said, and then issued to Pan a due diligence contract, but Pan has not implemented, "We think the company has problems, the entire business model is Pan a person in control." We are only responsible for the money and all the operations are in his charge. The company currently has no board of directors. ”

To this, the street storehouse Net Public Relations department reply said, "the company so urgently needs the money to come in, how can not cooperate?" Pan has always been to Guangxi two times to do this thing. Due diligence should be conducted by a group of investment companies to investigate the investment company, rather than being provided by the investing party. And Huaxia Morgan never came. ”

In fact, an investment fund management company, not doing due diligence on the signing of investment, not the normal operating procedures.

As for why the original shareholders are unwilling to invest more, Huang Jinlong said: "After the investment, every month to do the budget, and then the money to Pan, but he did not report from the two quarter of 2012." At the beginning of 2012, there was no additional investment due to the delay in return of investment by the street network. ”

It is noteworthy that in the January launch of the value assessment press release, initially did not mention the investors, only the intention to sign 200 million yuan. Huaxia Morgan expressed dissatisfaction with this, after the street library network in the news release in particular to clear 200 million yuan of investors, and again press.

The management of the network said that when the value assessment press conference was held, Huaxia Morgan's move was to improve its industry influence. But this incident led to the inability of the street bank to introduce new investors, broke the other investors into the company's back, causing the survival crisis in the street bank.

And for China Morgan's default, the street library network PR said, and investment companies to court is useless, the other side has a lot of reasons to refute.

The game between shareholders and management

"Even who is the real owner of the street network is not clear, but said the boss of the abscond, a bit surprising." "The Daily economic news reporter was told by the head of a street library network, who declined to be named. In fact, the street network has 3 major shareholders, of whom 2 are expatriates, for chairman Huang Jinlong and director Shei Yuda, Supervisors Chi Jiayu is Chinese nationality. President Pan and several other shareholding executives share about 20% of the shares.

However, reporters in the interview Huang Jinlong and Chi Jiayu, both sides on behalf of the agreement noncommittal. Huang Jinlong once said that he is not the chairman of the Street Library network, "I was not aware of all the activities of the planning is Pan design." ”

All kinds of news and presentation materials show that Huang Jinlong is the founder of the Street Library network. Reporter in Beijing city Trade and Industry Bureau inquires, chairman for Huang Jinlong, Shei Yuda is director, Chi Jiayu is supervisor. According to the former director of the introduction, Pan as a legal representative, and shareholders agreed to the sole agent Huang Jinlong and other people's shares, both sides in 2011 signed the agreement on behalf of shares.

Who is the founder of the Street library network?

At first, Huang Jinlong said, only Pan is the only boss, and later he admitted that the founder of the street network is a lot of Pan is one of them, plus Shei Yuda and other people, there should be more than 10 people.

According to the reporter understand, April 2011, Huang Jinlong holding a business plan for discount voucher items, for many years engaged in marketing Pan introduced his business plan. 2011 is the discount voucher (card) start-up project is hot, Pan also think that the plan is good, he April 2011 to June to examine the feasibility of the project, and the business plan to do the carding and optimization, designed a complete set of O2O model, so, the street library network business model emerged.

August 2011, the Street Library Guangzhou company was established, Pan is responsible for the operation, Huang Jinlong is responsible for investment. Since Chinese law stipulates that the Internet does not allow foreigners to buy shares, Pan held a 82% stake in Huang Jinlong. Huang Jinlong is equivalent to holding shares of 3 others.

Pan also brought the Beijing Team 4 people, fully responsible for operations management. Pan's team agreed to have 18% of the shares, Pan is the legal representative. According to internal staff, since the company was founded, the shareholder Huang Jinlong actually invested a total of 55 million yuan.

May 2012, a Shenzhen investor joined, the two sides agreed to invest 40 million yuan to swap 10% of the shares. At the beginning of June, the two sides signed, August implementation of the 12 million yuan.

This is also the most popular time for the street Library network. In fact, Huang Jinlong to account for 55 million yuan, Shenzhen investment 12 million yuan. The total cost of the street library has been about 67 million yuan.

When Huaxia Morgan's 200 million yuan investment did not enter, the Shenzhen investor lost confidence. The company would like to invest more, but because the street bank shareholders will disagree, contradictions, no shareholders are willing to invest.

The game of investment shareholder and management has since started. May 2013, Pan found another Shenzhen investors, the other side to invest 20 million yuan, in exchange for 60% shares. But because of the dilution of shares too much, the board does not agree. Huang Jinlong said: "Pan is to use the bait to invest 20 million yuan to force us, is the hope that shareholders continue to invest money." ”