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Changhong, Haier, Hisense may buy stakes in Gome

By Tuo Yannan (chinadaily.com.cn)
Updated: 2009-01-15 17:46

Changhong, Haier, Hisense and other household electrical appliance manufacturers may acquire stakes in troubled electrical appliance retailer Gome, according to www.Chinanews.com.cn.

The report said Gome, the largest electric appliance vendor on Chinese mainland, may offer shares in lieu of the money owed to these manufacturers. However, it is not clear whether the shares being offered are part of Gome's listed shares or non-listed ones.

An industry expert said Gome's action is largely to ease its cash flow problems and to find a way to combat the current downturn.