Head of China's Top Furniture Retailer Dies Amid Property Slump

Mint

5 days ago

The chairman of China's biggest home furnishing retailer has died amid an investigation by authorities and as his company endures a protracted slump caused by the sluggish property market.
Wang Linpeng, chairman and chief executive officer of Wuhan-based Easyhome New Retail Group Co., died at home on Sunday, the company said, without identifying the cause of his death. Wang was detained by Wuhan city authorities three months ago and was released earlier this month 'pending investigation,' the company said in a separate statement, without giving more details.
A downturn in China's property market and weak consumer sentiment have squeezed furniture retailers and home furnishing companies. In recent years, even the likes of Ikea have tried to lure thrifty consumers with steeper discounts to stem declining growth, and Japanese furniture retailer Nitori Holdings Co. has paused expansion and shuttered some stores.
Read: China Property Recovery Stalls, Eyes on Politburo for Support
Easyhome, which operates malls offering furniture, construction and decoration materials, has seen its profit drop for three consecutive years. Net income declined 39% in the first quarter of 2025, according to the Shenzhen-listed company, in which Wang and parties acting in concert held a combined 44% stake.
Dong Yi Ri Sheng Home Decoration Group Co., another Shenzhen-listed home furnishing company, expected a net loss of at least 46 million yuan in the first six months of this year, adding to a loss of 540 million yuan in 2024.
The challenging environment has driven some out of business. Guangzhou-based furnishing brand Liangjiaju announced end of operations this month, while the once-popular renovation services provider Zhufaner informed clients in June that it's unable to fulfill orders as scheduled due to financial difficulties.
China's furniture retail sales growth has slowed significantly from before the pandemic, with expansion at low single-digit in the past two years compared with more than 10% annual increase between 2016 and 2018, according to data from the National Bureau of Statistics.
Shares of Easyhome dropped as much as 3.4% Tuesday after the company confirmed the death of its chairman. The stock has slumped more than 17% so far this year.