Bain-backed Gome loses Chairman Chen

According to a statement to the Hong Kong Exchange, Chen will depart to "spend more time with his family," and will be replaced by Zhang Dazhong, the founder of Beijing Dazhong Electrical Appliances Co., which Gome acquired in 2007. These types of M&A activities have solidified Gome's position as China's number two electric home appliance retailer.

During his time as chairman, Chen was reportedly an ally of Bain Capital, allowing the PE firm to initially invest $233 million in Gome in 2009, which later translated to a 10% stake in the company. That capital injection makes Bain the company's second-largest stakeholder after Huang, who reportedly owns a 31% stake. Huang has been vocal in his opposition to Bain's involvement in the company, and had made an unsuccessful play in August to eject Chen and instate his sister to the chairman role. The move was rejected by Gome's board, which includes Bain's Jonathan Zhu.

In May, Huang was sentenced to 14 years in prison for a range of crimes including insider trading and bribery, and he has further been sued by Gome for an undisclosed amount for allegedly breaching his fiduciary duties as the company's director.

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• Topics
• Greater China
• Consumer
• People
• Bain Capital Asia