Suning bought football clubs, retailers and a car company — then ran out of money

Suning, once China's largest electronics retailer, transformed itself under founder Zhang Jindong into a sprawling conglomerate. Between 2016 and 2019, Suning spent over $15 billion on acquisitions: Inter Milan football club, Carrefour's China operations, a stake in Suning Sports, and investments in logistics, finance, real estate and even electric vehicles.

The spree was funded by heavy borrowing and equity pledges. When China's retail sector slowed and the pandemic hit, Suning's core business declined while its debt obligations remained. The company struggled to service its debts, and its stock was eventually delisted from the Shenzhen exchange.

By 2021, Suning was in a full debt crisis. Zhang Jindong stepped down, and the company was restructured under an investor consortium. The case illustrated the danger of a retailer diversifying into unrelated sectors with borrowed money, and the fragility of conglomerates built on leverage rather than operational synergy.