Nanjing well-known high-end dining brand “Minguo Red Mansion” (hereinafter referred to as Red Mansion) has recently plunged into a serious crisis. All of its stores have been fully closed, involving issues such as unpaid wages, rent arrears, supplier disputes, making it difficult for consumers to get refunds for their stored value, with some netizens even suspecting that the owner is “running away with money.”
According to a report by the mainland media “Brand Observer”, in September 2025, the vermilion gate of the “Minguo Red Mansion” on the east side of Nanjing’s Laomen remained tightly closed, with a notice on the glass indicating “internal adjustments, temporarily closed,” signaling that the Red Mansion had indeed shut down.
Established in 2009, Red Mansion was known for its Huaiyang cuisine and Republic of China-style decoration, once praised as the “ceiling of Nanjing Chinese restaurants”. Its sub-brand, Purple Mountain Courtyard, won the Black Pearl Restaurant Honor three times in a row and was selected in the Jiangsu Michelin Guide in April this year.
The closure crisis of Red Mansion emerged in July 2025, with complaints to relevant departments stating that “from April to June this year, Red Mansion did not pay salaries and did not pay social security for employees,” attracting attention.
Starting in August, there were continuous posts from individuals claiming to be Red Mansion employees, stating that the boss had owed several months’ worth of wages and had not settled payments with suppliers.
Some stores even received notices of power cuts due to unpaid electricity and gas bills, indicating a serious breakdown in the financial chain.
By September, even the flagship store, Purple Mountain Courtyard, had closed, with only some operations resumed under employee self-management mode.
On the night of September 7th, a post allegedly from Red Mansion’s founder Wu Bin circulated on social media, revealing the true difficulties behind the operation of Red Mansion:
The investment failures in Wangshan Street and Xinggong projects caused a loss of about 30 million yuan; long-term debt operation led to wage arrears; internal management loopholes, including position transfers; and the other co-founder Guo Tengge borrowed at high interest rates to rescue the company into a debt trap.
Enterprise investigation information shows that since the end of 2023, the company has been involved in several contract disputes, including purchase and sale contract disputes with food suppliers (November 2023 and August 2024), renovation contract disputes (November 2023), and lease disputes with Nanjing Taipingli Historical and Cultural Protection Development Co., Ltd. (January 2024), with Wu Bin himself listed as the executed person and owing nearly 5.9 million yuan.
On September 5th, Nanjing East Gate Historic District Management Co., Ltd. issued a notice stating that Red Mansion had not paid rent and related expenses by July 29th. If not resolved by September 8th, the lease would be terminated.
Before closing, Red Mansion launched several aggressive promotional activities, also seen as signs of financial crisis.
Starting from June with activities such as “Deposit 5,000 and get 5,000,” “Deposit 10,000 and get 10,000” for use throughout the store. In August, they sold large denominations vouchers on Meituan for 981 yuan, redeemable for 1,999 yuan, with discounts as low as 4.9 times.
These measures attracted a large number of consumers to top up, but with the subsequent closure of the stores, the stored value funds could not be used or refunded. It was reported that the amounts stored by consumers varied from thousands to hundreds of thousands of yuan, with one case as high as 760,000 yuan, suspected to be inflated.
Netizens questioned whether these promotions were a precursor to the owner “running away with money,” especially when Wu Bin went missing at one point.
According to the “Brand Observer”, some netizens posted online saying that the owner’s wife had run away to Greece with her parents and a few children, leaving her husband alone with no enforceable assets. There were also claims that Greece was a suitable place to escape to, where with 200,000 euros, one could buy a property and obtain permanent residency.
However, on August 18th, the company issued a notice acknowledging delayed payments due to market changes and cash flow issues, but emphasizing that “the owner did not run away,” and promising to fulfill obligations as agreed.
Wu Bin also pledged to repay debts on social media, but the notice did not mention the scale of wage arrears or a refund plan for stored value, failing to completely quell doubts.
The latest update shows that from September 10th, Purple Mountain Courtyard has been self-operated by employees, allowing consumers to deduct 30% of stored value consumption, but a clear refund plan is still not in place.
The “Brand Observer” believes that the closure of Red Mansion is a chain reaction driven by “cost control loss + customer base shrinkage + hidden model defects.”
According to the catering union report, Wu Bin and his wife Gezi switched from the advertising and interior design industry to catering, founding the “Minguo Red Mansion” brand in 2009. The decision to focus on the Republic of China cultural theme in their dining establishments was out of their love for the era.
The “Brand Observer” stated that they were meticulous in the selection and design of the stores.
In the two valuable buildings adjacent to the solemn Presidential Palace on Changjiang Road in Nanjing, the Red Mansion secured one of the Republic of China military officer villas at a high price.
In the Fu Zi Temple store of the Red Mansion, located by the precious Qinhuai River, they dedicated nearly half of the ground floor space to an art gallery.
The newly opened Minguo Red Mansion store in July this year was located at the foot of Purple Mountain, within the 5A-rated Jing Shan Scenic Area, sharing a green hillside with Purple Mountain Courtyard.
“If you think the architecture here is interesting, we spared no effort in the design, decoration, and rent of the place,” said the founder’s wife, Gezi, in an interview with the “Brand Observer.”
According to the “Brand Observer,” not only did they spare no expenses in store selection, but also in decoration. The Red Mansion stores emphasized a “Republic of China retro” style—spiral stairs made of black steel plates and coral red marble, porcelain tiles and mirror inlays in dark wooden frames, brass furniture and appliances…
The mere accumulation of these costs was enough to compress the profit margin of Red Mansion to be “razor thin.” Moreover, in recent years, high-end dining establishments have faced pressure, with demand shrinking for “ceremonial consumption” such as business banquets and upscale dinners. Today’s young customers tend to lean towards “light luxury replacements,” valuing the ambiance but unwilling to pay for “excessive markups.”
From the per capita hundred yuan Red Mansion Coffee to the thousand yuan level Purple Mountain Courtyard, the multi-brand layout of Red Mansion seemed to cover all scenarios, but in reality placed higher demands on the supply chain and management circumference, with any oversight potentially triggering a chain crisis.
The “Brand Observer” believes that Red Mansion’s “prepayment + member value storage” model was also a “time bomb” planted by itself. Relying on fast recouping of funds through “prepayment + member value storage,” once the expansion speed exceeded actual operational capacity, the financial chain could turn into a “tightrope walk.”
The article argues that the prepayment model itself is not to blame, but strict adherence to financial supervision regulations, prioritizing consumer rights. Any operation based on “overdraft trust” will eventually be reversed by the market. When the tide recedes, what will truly remain on the shore are the “long distance runners” who respect the market and consumers.