China’s embattled retail giant Suning.com is getting a RMB 5 billion ($685 million) lifeline from state-backed Citic Trust and China Huarong Asset Management to help turn its business around, reports Caixin. Citic Trust and China Huarong will invest the funds in Suning over 10 years to help revive the once-highflying retailer, according to Citic Trust, a unit of state-owned conglomerate Citic Group. Citic Group is also the largest shareholder of China Huarong with 26.46% after a multibillion-dollar overhaul of the troubled bad-debt manager.
The initial tranche of funding will provide relief for Suning’s logistics park projects in Shaoxing, Hangzhou, Nanjing, and Chengdu, aiming to restructure and revitalize the projects, Citic Trust said in a statement. The investment will also help overhaul Suning through debt and equity restructuring, Citic Trust said.
In August, Suning disclosed that it would receive RMB 1.5 billion from China Huarong through a trust plan managed by Citic Trust. The investment will span six years in a bid to ease pressures on the company’s logistics business, Suning said.