The struggle for control of giant electronics retailer GOME has escalated. The company's imprisoned founder, Huang Guangyu sent a letter to all company employees, seeking help in ousting company Chairman Chen xiao.
In his open letter, Huang Guangyu employed harsh words to criticize Chen Xiao.
He accused the chairman of trying to "steal control of the company", and said Xiao's adjustment to company operation strategies impaired Gome's long-term development.
Huang accused Chen of inviting US company Bain Capital behind his back to invest in the company. He labelled the collaboration a "conspiracy", and warned that Chen would transform Gome, one of most successful Chinese-owned brands, into a profit-making tool under foreign control.
He also accused Chen of issuing new shares and offering option rights to high-ranking company officials without "considering the interests of other shareholders."
In addition, Huang expressed dissatisfaction about Chen's five year plan announced in June, that changes the original growth mode in scale leading to improvement in market integration.
Ye Tan, Business Commentator said "Among Huang Guangyu's accusations, one is real that in statistics, Gome's growth perspective is surpassed by its rival. But what he said about Gome becoming a US brand. That risk is small."
Gome's management team hasn't given an official response. But some executives pointed out that Gome's share price was only 1.2 Hong Kong dollars when trading suspended due to Huang's case in November 2008.
Two years on, its share price rose to 3 Hong Kong dollars. That proves Gome's current management can bring good return to investors.
The market is now waiting to see the hard figures for Gome's performance. The company's first half report will be released next week.