Another day, another he-said-she-said rumor fight between the nameless denizens of the internet and the CEOs that govern their favorite websites. This time, it’s Vancl on the hook, with rumors alleging the company has lost as much as 2 billion RMB ($312 million) over the past four years, and the company — of course — denying it.
The rumors come from an anonymous blog about Vancl on which a user has posted detailed financial information about the company, saying that because of mountains of “dead products” in its warehouses — products the company has made but can’t seem to sell off — Vancl has likely lost as much as 2 billion RMB. The news comes at a time when Vancl is looking particularly weak due to the loss of a high-level exec, a delayed IPO, and complaints about product quality.
Of course, “anonymous blogger” isn’t always a synonym with “credible information,” especially in China’s highly competitive online market, where companies routinely attempt to destroy each other in the press with rumors (and sometimes some truths). Needless to say, Vancl’s CEO has already said that the rumors are not true. “The internet is free and open, and anyone can write a blog.”
True enough. But industry insiders told Beijing Business Today that even though the rumors may not be true, it’s evident that Vancl does need to make some adjustments, as its real problems are already serious enough that it needed to adjust or perhaps cancel its IPO.