Gome Electrical Appliances Holding Ltd., China’s second-largest electronics retailer, said it filed a lawsuit in Beijing against former chairman Chen Xiao for breaching an agreement to protect the company’s reputation.
Gome Electrical Appliances Holding Ltd. Chairman Chen Xiao quit, succumbing to a seven-month campaign by billionaire founder Huang Guangyu to reassert control over China’s second-largest electronics retailer from a prison cell.
Billionaire Huang Guangyu ’s representatives are talking with Gome Electrical Appliances Holdings Ltd. about continuing the company’s procurement and management agreements with his 400 privately owned stores.
Jailed billionaire Huang Guangyu , fighting for control of the electronics retailer he founded, failed to win investor support for his proposals to oust its chairman and install his sister and lawyer as directors.
Gome Electrical Appliances Holding Ltd. , China’s second-biggest electronics retailer, disputed an assertion by David Webb , publisher of Webb-site.com, that it misled investors about the effect of its founder’s imprisonment.
Bain Capital LLC converted its 1.59 billion yuan ($236 million) bondholding in Gome Electrical Appliances Holdings Ltd. into a 9.98 percent equity stake, gaining votes at a shareholders’ meeting this month.