Wangmazi, (Wang is a surname of China, and mazi literally means pockmarks), the biggest name of scissors producer in Beijing, has applied for declaration of bankruptcy!
Chen, a 73-year-old woman in Beijing, said "how can the name collapsed in the twinkling of an eye? It is such an old brand, and my neighbors have been using its scissors for decades!"
Chen is only one among senior folks of Beijing who was sodden with the news-- the 352-year-old Wangmazi has applied to the People's Court of Changping for bankruptcy.
Arriving at Wangmazi's plant in Changping District, Shahe Town, the reporter found the place quite deserted, with no staff in sight at the working area. In fact, the production had long been on and off since 1995, and came to a full-stop in 2001, according to Bai Xiqian, chairman and general manager of Beijing Lichang Wangmazi Industrial & Business Co., Ltd.
Founded in 1651, the old brand has been enjoying a great reputation among Beijing people for its sharpness and durability. It's business continued to boom after the founding of New China in 1949 and, during its heyday, it once sold 70,000 kitchen knifes and 400,000 pairs of scissors within one month. In 1985 Wangmazi was given the title of "China old brand name" by the then domestic trade ministry.
However, since 1995, Wangmazi has been reporting losses one year after another, then was forced to borrow money to pay its workers. By May 31, 2002, the Wangmazi scissors plant claimed a total assets of 12.83 million yuan, a total of 27.79 million yuan in deficit, with the owner's equity being at minus 14.96 million yuan and the balance ratio of assets liability standing at 216.6 percent.
The court has placed the case on file at the beginning of this year and is planning to open the first debt holders' meeting in early June.