Baked-goods innovators Hutouju on brink of collapse

By YA Hanxiang

On Thursday night, angry employees and suppliers of Hutouju, often considered China’s most exciting desserts company, took to social media to complain about the confectioner.

Rumors and speculation

An angry online mob protested that the bakers had tried to cover up 200 million yuan (US$29 million) of debt by opening more outlets while employees’ salaries were long overdue.

They accused Hutouju, also known as the Tiger Attitude Chartered Pastry Bank, is secretly planning for bankruptcy and plotting an asset transfer while spinning yarn to employees, according to a short video released by Jason, who claimed to be a Hutouju product manager.

HU Ting, founder of the dessert retailer, told Jiemian News that speculation about the company’s debt was misleading and that no asset transfer was underway.

“Please give us some time, to explain to the public what has happened,” she said.

New taste, new customer base

In January, Hutouju secured a lifesaving financing round of 10 million yuan from Sequoia Capital and GGV Capital. Sources said the money had already been transferred to Hutouju, and what the company is facing now has nothing to do with the January financing round.

The bakery was founded in Changsha, Hunan province, in 2019 and opened its first store in Shanghai two years later. Hutouju has always been regarded as a highly innovative brand.

With strong roots in traditional Chinese desserts, Hutouju targeted a youthful audience with a straightforward idea and impressive packaging that people could instantly recognize. The company came up with new tastes and provided daily freshly baked desserts aimed at young professionals and their families.

Baked future

A Jiemian News reporter visited the headquarters of Hutouju in Shanghai on Thursday to find the office empty. An employee at the site said the company owed the building managers more than 1 million yuan in rent. Staff have been moved to another location. Another employee said he has not received his salary for the past four months.

By press time, the official Hutouju account on Douyin was still selling cakes via live streaming.