江南 First Private Garden in Suzhou Fails to Sell at Auction, RaisingQuestions About Financial Troubles
Suzhou, China – A highly anticipated auction forthe Jingsi Garden, a renowned private garden in Suzhou, China, dubbed the 江南 First Private Garden, has ended in a disappointing failure, raising concerns aboutthe financial health of the company that owns it. The property, valued at 145 million yuan (approximately $20 million USD), attracted over 60,000 online viewers but failed to attract a single bid.
The auction, held on September 24th on Alibaba’s asset auction platform, included the garden’s buildings, landscaping, and a collection of valuablerocks. However, the auction was complicated by a series of financial issues surrounding the owner, Suzhou Jingsi Garden Co., Ltd.
According to public records, the company has been embroiled in over 140 legal cases,with a total amount in dispute exceeding 9.36 billion yuan ($1.3 billion USD). Further investigation revealed that the company had already pledged 70 million yuan ($10 million USD) worth of landscaping rocks to a bank in 2014.
The auction announcement explicitly stated that therocks included in the auction represented only a small portion of the total collection, with the remaining rocks having been used as collateral for other debts. This revelation likely deterred potential buyers, who would have had to negotiate with the current owners of the remaining rocks separately.
There are many landscaping rocks in the garden, explained arepresentative from the auction company. The rocks included in the auction are only a small portion. The rest were used as collateral for a different company, so anyone wanting to purchase those rocks would need to negotiate with the current owner.
The auction’s failure has raised concerns about the future of the garden. The company’s financial troubles are likely to impact its ability to maintain the property, which is currently open to the public as a 4A-rated tourist attraction.
The garden is currently open to the public, but its future is uncertain, said a spokesperson for the company. The successful bidder will have thefinal say on whether or not it will remain open.
The garden’s history is intertwined with its owner, Chen Jingen, a private entrepreneur who built the garden over a decade beginning in 1993. The garden, known for its beautiful landscaping, including a collection of rare Lingbi stones, hasreceived numerous awards and accolades, including a National 4A-rated tourist attraction, a National Cultural Industry Demonstration Base, and a China Famous Trademark.
However, Chen Jingen’s financial troubles began to surface in recent years, leading to a series of legal disputes and ultimately, the company’s bankruptcy. In2020, the Suzhou Wujiang District People’s Court ordered the company into bankruptcy liquidation.
The auction’s failure is not the first time the garden has faced financial difficulties. In 2019, a previous auction for the garden’s collection of artifacts failed to attract any bidders.In 2021, the garden’s stone materials and ancient architectural components were auctioned off, with a mysterious buyer acquiring the stone materials.
The current auction is seen as a final attempt to dispose of the company’s assets. The auction company has indicated that a second auction may be held, witha starting price potentially reduced by 20% or more.
The future of the Jingsi Garden remains uncertain, with the company’s financial troubles casting a shadow over its future. The auction’s failure highlights the challenges facing private businesses in China, particularly in the tourism sector, and raises questions about thefuture of this once-renowned garden.
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