Feb. 11 (Asia Today) -- China's restaurant industry, long seen as resilient in the world's largest consumer market, is facing mounting bankruptcies as domestic demand weakens and deflationary pressures persist.
Chinese media outlets including the Beijing News reported that several well-known dining chains have recently shut down or entered bankruptcy proceedings, underscoring the depth of the downturn.
Among them is Shanghai Xiaonan Guo, once listed on the Hong Kong stock exchange and operating more than 80 outlets nationwide. The company previously posted annual revenue exceeding 2 billion yuan, about $280 million. However, prolonged weak sales and rising debt since 2018 pushed the firm into insolvency. It closed earlier this month after more than 40 years in business, with reports that employee wages were left unpaid.
Zhuhai Guo, which had been seen as a potential rival to global hot pot chain Haidilao, has also reportedly collapsed amid sluggish consumption. Industry sources say its debt ratio approached 500%.
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