The 1 million USA sanction wasn’t what pushed the group over the limit. Shandong Ruyi (the Chinese LVMH, some call it) has a debt of 4 billion USD. This is what is casting a shadow on the future of the holding. The group started off as a textile business and started growing via the acquisitions of brands such as Bally, Sandro and Maje. The problem now is that Shandong Ruyi is insolvent. It is no longer able to pay suppliers, that have decided to blacklist the company.
The uncomfortable situation, explains La Repubblica (Italian newspaper) has to do with the Group’s textile-related operations. The organization seems to have failed to deliver a shipment of 7,000 tons of Australian cotton to a Bengalese business, which had also already paid for the goods. The latter filed in international court and was awarded the win by the judge.
Penalty and Blacklist
At the end of the case, the penalty for Shendong Ruyi’s wrongdoing was a sanction of 1 million USD. Moreover, the Chinese entity still hasn’t paid the creditors the amount due, because of its financial difficulties. What’s worse is that Shandong Ruyi has also been condemned by other stakeholders. The International Cotton Association (HQ in Liverpool), has put the Chinese on the blacklist: suppliers are forbidden from providing the goods.
In photo various models of the Bally bag, brand owned by Shandong Ruyi