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‘Made in China, sold on Amazon’ troubles continue as US$314 million sale of online merchant Patozon drags on
- Global Top E-commerce, former owner of Patozon, has sued online fast fashion retailer Shein and another firm for failure to hold up their end of the deal
- TikTok owner ByteDance and Chinese smartphone giant Xiaomi were the major investors in the acquisition of Patozon early last year
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The former owner of Patozon, one of the biggest “made in China, sold on Amazon” merchants, has slapped online fast fashion retailer Shein and another firm with a lawsuit for non-payment of the stakes in that business they had agreed to buy.
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Global Top E-commerce announced the legal action in a filing to the Shenzhen Stock Exchange on Wednesday, indicating that the company has not yet received 53 million yuan (US$8.3 million) in overdue payment from Shein and Xiamen Yiwei Yihang Investment Partners since it entered into a 2 billion yuan sale of Patozon to a group of investors early last year.
Shein and Patozon did not immediately respond to a request for comment on Thursday.
TikTok owner ByteDance and Chinese smartphone giant Xiaomi Corp were the major investors in the Patozon acquisition.
A cross-border trading company based in the Jianghua E-Commerce Industrial Park on the outskirts of Shenzhen, Patozon was once a high-flyer in the “made in China, sold on Amazon” community, with the potential to dominate the global market for electronics accessories such as headphones and keyboards.
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Bowls for spit marketed as fruit baskets on Amazon for up to 20 times the local price
Bowls for spit marketed as fruit baskets on Amazon for up to 20 times the local price
The firm’s business, however, took a nosedive after its flagship online store on Amazon.com, Mpow, was shut down by the US e-commerce giant in April last year over suspected abuses of its customer review system.
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