Missfresh, haunted by bankruptcy, dumps user’s products and balance in app
Nasdaq-listed Chinese retailer Missfresh appears to be on the verge of bankruptcy. On September 13, Chinese media outlet Sina Tech reported that all product information in the Missfresh app had been purged by the company, and many user balances were now showing “0”. Regarding this problem, the company replied that there were failures in the servers of the system and that the staff was doing everything possible to recover the data.
As of July 27 this year, Missfresh’s on-demand Distributed Mini Warehouse (DMW) business has been shut down across China. Since then, many products labeled “next day delivery” for several major cities are now displayed as “out of stock”. According to a report by Jiemian News, at present, several “next day delivery” products found on the Missfresh app have disappeared, and all categories are out of stock.
As the app does not currently support checkouts, many users’ balances cannot be used for purchases. Since July 28, consumer complaints related to “Missfresh Refund” have appeared on Black Cat Complaint, a service for customers to file complaints in China. As of September 13, all complaints related to refunds on Missfresh initiated after July 28 are in “processing” status, and none of them have been completed.
Considering the difficulty for consumers to reimburse their expenses, the Beijing Consumers Association has scheduled a meeting with the Beijing-based grocery delivery platform on August 4, asking the company to properly handle the consumer complaints. The company replied that it had returned the rectification plan to the organization.
Missfresh said consumers can raise questions through its customer service hotline and the app. After calling the customer service hotline, company staff said that the user’s top-up balance can be registered for refund, but the balance generated by gift cards does not support refund for the moment. At the same time, as the system is being updated, the time required to process a refund cannot be guaranteed after check-in.
SEE ALSO: Struggling Missfresh implements corporate restructuring plan
In addition to consumers, former employees of the company also had the problem of safeguarding their rights. On July 28, through an online meeting, the company announced the end of working hours for many employees and a deferral of wages for some employees. At that time, according to the dismissed employees, the company still owed salaries for the months of June and July, and the social insurance of employees in May, June and July had also been cut off.
Supplier payments aren’t looking too rosy either. A supplier of aquatic products Missfresh appointed a local law firm to sue Missfresh in April this year. After mediation by the court, Missfresh promised to pay in three phases within nine months. The last payment date is July 29, but so far the supplier has not received any payment.
As for Missfresh’s other business lines, the Bianligou, a vending machine company, was sold to Shenzhen Daily Convenience Technology for 30 million yuan ($4.38 million), while the market smart food and cloud-based retail companies failed to post a profit. and still need more investment. Users cannot place next day delivery orders or 30-minute delivery orders. Many ex-Missfresh employees have said that in-app product dumping and user balance may be caused by no one running the company internally.