"The decoration company has run away. They can't be found and the money can't be refunded..."
In recent years, chaos has occurred frequently in the decoration industry. Decoration companies have gone bankrupt and companies have taken money and run away. Statistics from the People's Court Announcement Network show that a total of 62 decoration companies declared bankruptcy or entered bankruptcy liquidation in 2020. Since the beginning of 2021, 10 decoration companies have declared bankruptcy or entered bankruptcy liquidation. Compared with the 36 bankruptcies and liquidations of ceramic companies in 2020, this is 26 more. It can be seen that decoration companies are facing more severe market tests due to their weak overall anti-risk capabilities.
In the bankruptcy documents of the above 72 decoration companies, reporters from China Ceramics Network noticed that many decoration companies were directly ruled to declare bankruptcy due to insolvency, and there were also cases where the relevant person in charge was unable to be contacted.
In addition, a reporter from China Ceramics Network found that many decoration companies have recently been shut down and ran away. Hundreds of decoration owners and suppliers were damaged, with the maximum loss reaching 130,000 yuan.
Case 1:
Mr. Wu from Donggang Garden in Jingzhou Development Zone broke the news that he signed a decoration construction contract with Jindi Decoration Design Engineering Co., Ltd. in September last year and paid most of the decoration money. The agreed completion date was December last year. However, after just one month of construction, the company disappeared.
Mr. Wu said that in the first month, people came to work every day, but gradually the noise stopped. Mr. Wu urged him many times, but the other party said that there was a problem with the decoration funds and asked him to pay the money first before completing the project. He paid 62,000 yuan for the renovation, leaving only the final acceptance payment of more than 6,000 yuan. He tried calling the company staff and boss, but no one answered, and the company was already empty. Later, he learned that the Shashi Branch of the Jingzhou City Market Supervision Administration had already issued a "decision letter" to Jindi Decoration to be included in the directory of abnormal operations because of receiving similar complaints. At present, the Shashi District Market Supervision and Administration Bureau has intervened in the investigation.
Case 2:
Ms. Lin complained to reporters that after handing over the house early last year, Fujian HongTe Construction Decoration Engineering Co., Ltd. took the initiative to contact the owners of Shanghai Zhonghai Huanyu World and expressed its willingness to undertake the decoration of their new houses. The decoration fee is more than 70,000 yuan per household. After seeing Hongte Architectural Decoration's decoration sample houses in the community, more than 40 owners, including Ms. Lin, signed decoration contracts with the company one after another.
Ms. Lin’s home decoration project was completed in four phases. However, when the decoration payment reached the third phase, Ms. Lin discovered that Hongte Construction and Decoration had not started construction for a month. Ms. Lin took the initiative to find Hongte Architectural Decoration. The staff first gave various excuses, and then they couldn't even get through the phone. Then she found that the door of the Hongte Architectural Decoration office building was closed and it had been vacated. It is understood that the police have opened a case to investigate the matter for contract fraud. More than 40 property owners who have contracts with the company are awaiting the outcome of the police investigation.
Case 3:
According to Mr. Liu, a citizen, in September last year, he signed a house decoration and construction contract with Xincheng Meiyu Company, and paid a total of about 50,000 yuan in decoration fees to convert an area of his house in Jiang'an District. About 76 square meters of idle property is rented to this company and will be sublet after being converted into a B&B. "We agreed to start the renovation on October 9 last year and finish it on January 9 this year. However, the renovation is currently less than half completed. The decoration master left in November last year due to lack of wages, and the company was also empty."
Currently, the door to the office building of Xincheng Meiyu Company is closed, and the company phone and the phone of a manager surnamed Zhou cannot be reached. Tianyancha shows that Xincheng Meiyu Company was only established on July 17 last year and is still in existence. On December 30 last year, the company’s investors and persons in charge changed.
Case 4:
Master Zou bought a house off-plan in 2018. At that time, a decoration company was soliciting business, saying that if he paid the decoration fee in advance, he could enjoy various discounts and receive free furniture and appliances. So Master Zou signed a contract with the decoration company and paid more than 60,000 yuan in decoration fees. However, when Master Zou contacted the decoration company for his new house in August last year, what he waited for was the news that the decoration company had run away. Not only Master Zou, many owners were also "riddled" by this decoration company called Jiahe Meirun. They paid the decoration money in advance, and the amount of damage was up to 130,000. The public security department has launched an investigation into the matter.
Case 5:
On January 29, some netizens broke the news that the door of Jiaguanjia Decoration Company, located opposite Wuyue Plaza in Fuyang, was closed, and it was suspected that the company ran away with the money. In addition, it is reported that there have been many local decoration companies running away with money in recent years, including Fuyang Wanjiang Decoration Company, Yingshang Wanjiang Decoration, Fuyang Longtou Decoration, Fuyang Jiuchang Decoration, Fuyang Mingchao Decoration, Fuyang Yibai With chain decoration companies and others, rough statistics indicate that nearly 400 decoration owners and suppliers have been cheated, with losses reaching tens of millions of yuan.
……
Industry insiders analyze that decoration companies are running away mainly because of serious product homogeneity, blind expansion, vicious low-price competition, and some companies misappropriating project funds, resulting in a broken capital chain and inability to perform contracts. Especially in recent years, the country has vigorously promoted the policy of finely decorated houses. Complete decoration and move-in have become the main modes for decoration companies to attract consumers. However, the management chain involved in decoration projects is relatively long, including design, material procurement and transportation, construction, supervision, after-sales and other links. Each link has more or less pain points, which poses a high challenge to traditional decoration companies. operational and management requirements. However, most decoration companies are highly dependent on localized construction and neglect operation and management, resulting in weak overall risk resistance. Once the capital chain is broken, they will abandon it and walk away. Most consumers don't understand decoration and are easily fooled. However, many suppliers lack early warning capabilities and get "trapped" accidentally.
At present, the decoration and decoration industry is still in a relatively chaotic state. Supervision is difficult, the industry is mixed, and it is difficult for consumers and suppliers to safeguard their rights. Here, the reporter from China Ceramics Network reminds everyone to keep their eyes open when choosing a decoration company.
For decoration owners, don’t be greedy for cheap when decorating, and don’t be blinded by various offers. Decoration is a conscientious project, and seeking small gains will only lead to "scum". First of all, you must make a good plan and budget before decorating. Only by knowing what you are doing can you avoid being "rogue" by unscrupulous decoration companies. Secondly, when choosing a decoration company, first understand the company's situation, whether there has been a change of legal person, whether the employee's wages are in arrears, whether it is the person subject to execution, etc. The last step is the contract. If you don’t understand it, you can consult an experienced acquaintance or lawyer.
For suppliers, including ceramic tile brands (manufacturers) and dealers, when cooperating with decoration companies, they need to take preventive measures in advance for the risks they will face. Pay full attention to the internal operations of the cooperative decoration company before cooperation, follow up with feedback at any time during cooperation, and keep in touch with them after cooperation. In addition, it is necessary to establish relationships with the internal personnel of the cooperative decoration company, which will help to prepare for a rainy day, so that when problems are discovered, corresponding measures can be taken as soon as possible, the supply can be stopped in a timely manner, the risk of running away is prevented, and losses can be reduced as much as possible.
