Meitehao had ¥8.6B revenue and 200 stores — then a prepaid card run killed it

Meitehao was founded in 1993 in Taiyuan, Shanxi, and grew into the province's largest retailer. At its peak it operated nearly 200 stores across Shanxi with annual revenue of ¥8.6 billion in 2023. It was ranked No.1 among Shanxi retailers by sales.

Like most Chinese supermarket chains, Meitehao was undermined by the decline of the hypermarket format. E-commerce, instant delivery and discount grocery chains eroded foot traffic and revenue. But Meitehao compounded the problem by using prepaid card deposits — customer money loaded onto stored-value cards — to fund long-term investments in logistics parks and central kitchens. This created a classic 'short borrowing, long investment' mismatch: the cash was needed on demand, but it was tied up in illiquid assets.

The crisis broke in October 2025. Meitehao closed more than a dozen stores without the 30-day notice required by law. Customers rushed to spend their stored-value cards, triggering a run. In three months, consumers cashed out ¥1.1–1.2 billion — draining the company's working capital. By December 2025, the cash flow was exhausted and Meitehao filed for pre-reorganization with the Taiyuan Intermediate Court.

The debt exceeded ¥5 billion, spread across 3,000 creditors. In January 2026, the court formally accepted the restructuring and 54 affiliated entities were consolidated into a single reorganization. State-owned Shanxi Shennong Investment Group was brought in to operate the stores, but did not assume the debt. Meitehao became another casualty of the Chinese supermarket industry's structural decline — a regional champion undone by format disruption, poor capital management, and a self-inflicted liquidity crisis.