Alibaba Asset Platform has announced that the restructuring investor qualification of Shaanxi Songmao Food and Beverage Co., Ltd. (referred to as “Songmao Food”) will be publicly auctioned on September 19, 2025, with a starting price of 135 million yuan.
According to information from the Alibaba Asset Auction Platform, the assets of Songmao Food to be auctioned on September 19 will cover all assets of the company except for deposits. If the transaction is successful, the full payment must be made within 10 days; if there are no bidders or the buyer fails to make the payment on time, the administrator will apply to the court to terminate the reorganization and declare bankruptcy.
The core assets corresponding to this auction include:
– Industrial land of about 123 mu located at No. 4185 Shangyuan Road, Caotan Road, Xi’an, with a land-use right until January 31, 2062.
– 8 buildings totaling about 27,348.75 square meters at No. 4185 Shangyuan Road, some of which have not yet obtained ownership certificates.
– 6 sets of houses in the central cultural square of Hantai District, Hanzhong City, involved in an unregistered seal.
– Some machinery and equipment, mostly purchased in the early years, some of which are unusable; 5 vehicles, with 4 reaching the scrapping age limit; 3 external investments; 35 trademarks/copyrights.
If the auction is successful and the buyer makes the full payment on time, they will legally acquire the rights associated with the decision of Shen 01 Bo 10-67 and (2017) Shen 01 Bo 10-71, holding 100% equity of Songmao Food and entering into subsequent operation and repayment arrangements; otherwise, the case will proceed through the reorganization termination and bankruptcy process.
The factory buildings are currently temporarily rented, with tenants including Shaanxi Songmao’s wholly-owned subsidiary Shaanxi Songsu Logistics and Xian Zhichi Electrical Equipment Co., Ltd. After the new investor pays the amount in full, the additional rental income will belong to the reorganized company.
However, Songmao Food has also had its share of glory. Songmao Food was established in 1992 by Taiwanese entrepreneurs and was wholly owned by Hong Kong Songmao Development Co., Ltd. It is a local catering enterprise rooted in Shaanxi. In 1993, Songmao Food secured the exclusive franchise rights of KFC in Shaanxi. In April of the same year, Shaanxi’s first KFC opened on South Street in Xi’an.
By around 2010, Songmao Food had opened more than twenty KFC restaurants in Shaanxi.
Songmao Food has also successively operated and incubated more than ten well-known catering brands, including Baskin-Robbins ice cream, Dunkin’ Donuts, 3 Huan 3 Jia hybrid restaurants, and KING COFFEE, among others, which are well known to local consumers.
Subsequently, Songmao expanded its business to areas such as logistics and hotels, forming four core industry pillars of catering services, food processing, hotel accommodation, and logistics distribution, expanding from Xi’an to the whole country.
However, despite its outward success, the restaurant giant Songmao has long been in crisis. Since 2015, the company has been reported to have ceased operations and owed wages. Songmao Food had explained externally that some brands ceased operations because the company invested over 200 million in building logistics, leading to short-term financial tightness. On the other hand, some brands were “unsuitable for the market,” and thus, the company chose to proactively end operations.
In 2017, Songmao Food entered bankruptcy proceedings.
In 2017, the Intermediate People’s Court of Xi’an accepted the bankruptcy liquidation of Shaanxi Songmao and designated an administrator. In June 2024, the court approved the draft reorganization plan and confirmed Shaanxi Meizhao Enterprise Management Partnership Enterprise (Limited Partnership) as the reorganization investor, but they failed to make the payment on time.
On June 19, 2025, the National Enterprise Bankruptcy Reorganization Case Information Network released a “Decision to Approve the Reorganization Plan” and related notices of changes in the reorganization plan; on July 2, the administrator made changes to the public. Subsequently, the reorganization investor qualification entered the auction process.