The embattled Internet tycoon behind struggling Chinese tech company LeEco has resigned from all his positions at the company’s publicly traded arm, the latest action in a stunning fall for one of the country’s most flamboyant tech leaders.Jia’s departure from Leshi Internet ended his tenure at the helm of one of China’s most ambitious tech companies.Last week, a court in Shanghai froze $182 million of assets tied to Jia, and Tuesday, shares connected to Jia totaling 40 percent of Leshi Internet’s outstanding stock were frozen by courts, according to a company filing.Fierce competition has eroded profit for most handset makers.Jia’s guarantees bind together much of LeEco’s debt, setting up a potentially messy situation that could embroil all of the LeEco companies as creditors battle for assets.No LeEco company has filed for bankruptcy, a company spokesman said, and LeEco could still receive a bailout from investors or a state-owned company.LeEco’s electric car ambitions are centered on Los Angeles, where the financially troubled startup Faraday Future, with more than 1,400 employees, is developing high-end electric cars in a bid to challenge Tesla Motors.Jia remains Faraday Future’s largest shareholder and emphasized in his letter Thursday that he would dedicate his energy to getting the company’s first production-ready model, called the FF 91, into mass production.The U.S. Energy Information Administration said Thursday that electricity production from utility-scale renewable sources exceeded nuclear generation in the most recent months for which data is available.The growth in renewables was fueled by scores of new wind turbines and solar farms, as well as recent increases in hydroelectric power as a result of heavy snow and rain in Western states last winter.SoundCloud is cutting about 40 percent of its staff in a move the digital music service says will give it a better financial footing to compete with Spotify and Apple.The Berlin company, which in January said it was at risk of running out of money, informed staff on Thursday that 173 jobs would be eliminated.Exports rose modestly to $192 billion — the highest level since April 2015 — on rising shipments of cars and consumer goods, including cell phones.President Trump has vowed to reduce America’s trade deficits, blaming them on bad trade deals and abusive practices by trading partners, particularly China.
NYS Entity Status
NYS Filing Date
AUGUST 22, 2014
NYS DOS ID#
NYS Entity Type
DOMESTIC BUSINESS CORPORATION
2014 - JIA JIA LE GROCERY STORE INC.
Around the Web
- Business News Roundup, July 7
By Chronicle News Services - Thursday Jul 6, 2017
- LeEco Founder's Assets, Shares Frozen Over Missed Interest Payment
Tuesday Jul 4, 2017
A court in Shanghai froze nearly $181 million in assets and an additional $2.3 billion worth of shares in a listed unit partially owned by LeEco Holdings founder Jia Yueting after the unit missed an interest payment, deepening the firm’s financial distress.
- Former Yahoo land could be up for grabs in LeEco dispute
By Nicholas Cheng and Wendy Lee - Thursday Jul 13, 2017
Entrepreneur Jia Yueting — the public face of the firm — stepped down as chairman from LeEco’s board, the company laid off hundreds of workers and a planned merger with Irvine’s Vizio, a TV maker, fizzled.“It could a potential source of recovery,” said David Furbush, a partner and securities litigation lawyer for the Pillsbury law firm.Furbush said LeEco’s Chinese assets are safe from Vizio, because China does not have a treaty recognizing U.S. court judgments.With Shanghai freezing $180 million of LeEco’s assets in China, University of Southern California Gould School of Law professor Michael Chasalow thinks more players are going to pop up to claim its U.S. assets.Vizio declined to comment on whether it would seek the sale of LeEco’s Santa Clara property but said in an email that its lawsuits seek to recover the unpaid portion of a termination fee promised in the LeEco deal and other punitive damages.Vizio is also claiming $50 million from Le Technology, claiming it breached an agreement to pay the fee in the event LeEco failed to do so.The LeEco Santa Clara campus was planned with offices for up to 12,000 employees and spaces where members of the community could gather for live performances at an ampitheater on the property, the company said in a blog post last year.
- Amazon Deal for Whole Foods Starts a Supermarket War
By RACHEL ABRAMS and JULIE CRESWELL - Friday Jun 16, 2017
The grocery-store industry now faces, in addition to overseas competitors, a deep-pocketed rival with a track record of moving customers online.
- Walmart Puts Its Eggs in a Time-Saving Basket: Grocery Pickup
By MICHAEL CORKERY - Thursday Oct 5, 2017
Seeking an edge against Amazon, the retail giant is pushing a service that delivers your order to your car. Customers never have to step inside the store.
- Reality Bytes: A Highflying Tech Entrepreneur Falls Back to Earth
Thursday Jul 6, 2017
Jia Yueting likes to say that Apple is outdated, China’s big tech companies are innovation killers and his company is the real disrupter. But now, his dreams are fading away due to a cash crunch and worried investors.