Key Takeaways:
- Blank Me’s parent company Shanghai Yongxi Information Technology Co., Ltd., entered bankruptcy review proceedings.
- This case is a lesson in what happens when brands rely on capital-fueled growth and top-tier influencer traffic.
- L Catterton terminating its investment agreement was the beginning of the end for the brand.
Blank Me’s parent company, Shanghai Yongxi Information Technology Co., Ltd., has struggled with legal disputes and debt.
WHO: Founded in 2016 by Yang Boya, who previously served as the Investment Director at DeTong Capital, Blank Me currently offers about a dozen products on its Tmall flagship store, including makeup essentials like foundation, primer, concealer, and tools.
WHY: The company's collapse into bankruptcy review was triggered by a creditor petition following months of escalating debt and a multitude of legal and financial disputes.
DETAILS:
- Blank Me’s parent company entered bankruptcy review proceedings
- L Catterton’s inaugural RMB fund, L Catterton RMB Fund I (Chengdu) Equity Investment Enterprise, acquired a 10.18% stake in Shanghai Yongxi Information Technology Co., Ltd., the parent company of Blank Me,becoming its third-largest shareholder in 2023.
- L Catterton terminated the deal in February 2024, citing unsatisfactory financial due diligence and undisclosed legal proceedings.
- Since then, the company's debt crisis has erupted, with cumulative enforcement amounts exceeding RMB 19 million (approximately $2.8 million). Founder Yang Boya's equity has been frozen, and he has faced multiple consumption restrictions. The brand's social media accounts have gone dormant, and online GMV has plummeted.
- According to Tianyancha, the...
