The recent collapse of several Chinese housekeeping service platforms left hundreds of thousands of workers unpaid, mostly women from poor rural areas, as the owners absconded with investors' and clients' money.
Guanjiabang, a leader in the industry that raised several rounds of venture capital financing, ran into operating problems in October 2019 as its rapid expansion outstripped founder Fu Yansheng's management capabilities. While its business registration hasn't been canceled and no records of bankruptcy or liquidation filings could be found, the company is currently listed as being in "abnormal operation." Tiantu Capital withdrew from involvement and wrote off its 50 million yuan ($7 million) investment as a failed project, Caixin learned.
