Shanghai Eatery Element Fresh Files for Bankruptcy as Covid Hurts Business
Shanghai-based restaurant chain Element Fresh has filed for bankruptcy, the government-published Shanghai Daily reported today.
“While the business was profitable before Covid 19, financial burdens for the past 2 years have hurt the business,” the popular expat and health food restaurant said on its website.
The company will sign unpaid leave contracts with its employees and encourage them to start looking for new jobs, the Shanghai Daily reported.
China, the most populous nation in the world, has followed “zero Covid” policies that have limited the impact of the global pandemic in the country. However, the reduced number of international tourist and expat arrivals has hurt Western-style natural food chains like Element Fresh.
M on the Bund, another longtime restaurant icon among international companies in Shanghai, announced this month that it will be shutting down.
Shares of Trip.com, China’s leading online travel agency, have lost 24% of their value in Hong Kong over the past month, as Covid-19 cases spike around the world this month.
Overall, the Chinese economy is still expected to grow by around 5.3% in 2022 after gaining 8% this year, according to a forecast by the Chinese Academy of Social Sciences, the China Daily reported this month. this.
Element Fresh was founded in 2001 by American Scott Minoie, who opened a juice bar in 2000 in the Shanghai Center, the Shanghai Daily reported.
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