It may be no secret that LeEco is in some big trouble, but this latest rumor pretty much seals the fact. The news goes that LeEco’s Beijing Headquarters are on sale for a sum of RMB 1.4 billion ($211 million). The building covers 20,000 square meters of gross floor area, so it’s a pretty impressive thing.
It’s no secret that LeEco’s capital chain is shattering. Over the past few months, courts have approved multiple applications to freeze assets of LeEco’s affiliates and the assets of its founder Jia Yueting. The sale of its headquarter building in Beijing reflects that the once glorious LeEco has plunged deeper into crisis.
LeEco’s cash woes worsened when the company expanded to the US last year despite the limited capital and resources. The overstretched overseas expansion is one of the reasons why the firm’s struggling with the capital shortage, making it hard for LeEco to raise more funds.
LeEco’s plan to sell of their building may not even come through though. Last year, Leshi Holdings has mortgaged the headquarters to seek for a loan of RMB 1.4 billion through a third-party company, and the pledge is still in effect. This basically mucks up all of LeEco’s plan, so we’ll have to see how this eventually turns out.