Two of the top executives at Ultrasonic, a German-owned company which sells luxury footwear to China’s burgeoning middle classes, have gone missing, and so has the lion’s share of the firm's cash reserves.
In a possible sign that corporate PRs’ nightmares are starting to come true the world over, the news was announced on the ‘Ad Hoc’ section of Ultrasonic’s corporate website, under the title ‘CEO and COO disappeared, most of the company’s cash missing’.
The company stated that the chief executive Qingyong Wu and chief operations executive Minghong Wu had been missing since the weekend and ‘are not traceable’.
Moreover, the accounting department had reported that most of the company’s cash funds in China and Hong Kong had been transferred ‘out of the company’s range of influence’.
Not to worry, though, the company said. Its German holding company still has a six-figure amount to cover payment obligations. Phew!
Unfortunately, investors don’t seem reassured that everything’s really a-ok. The firm’s shares collapsed on the Frankfurt exchange after the announcement, losing 71.6% of their value.
Ultrasonic, or whatever’s left of it anyway, said it’s working with authorities and business partners to ‘clarify’ the situation and will inform investors as soon as reliable facts become available. Meanwhile, the mystery – and the PR’s nightmare –continues. Perhaps the pair will re-emerge and set up as sole traders?