Core Viewpoint - The article discusses the financial struggles of Meike Meijia, highlighting its significant losses and the impact on employees and suppliers, reflecting broader challenges in the high-end home furnishing industry [3][8][12]. Group 1: Financial Performance - Meike Meijia reported a net loss of 2.89 billion in 2022, 4.63 billion in 2023, and 8.64 billion in 2024, accumulating over 16 billion in losses over three years [8]. - As of the first half of 2025, the company had only 1.56 billion in cash but faced short-term debts of 18.3 billion, resulting in a debt-to-asset ratio of 63% [9]. Group 2: Employee and Supplier Impact - Over 200 former employees across North and South China are involved in a wage dispute, with total unpaid wages exceeding 10 million [4]. - Suppliers have also faced difficulties, winning lawsuits for renovations but only receiving one-third of the owed payments, with many cases still unresolved [6]. Group 3: Operational Challenges - The company has closed approximately 30 underperforming stores in 2024 and an additional 4 in the first half of 2025, indicating a need to reduce fixed costs amid declining revenues [10]. - High inventory levels have led to significant write-downs, as unsold furniture accumulates in warehouses [10]. Group 4: Strategic Missteps - The heavy asset model has strained cash flow, with the company failing to adapt to changing market conditions and consumer preferences [11][14]. - The shift in consumer demand towards smart products and the tightening of real estate policies have further exacerbated the company's challenges [12][14]. Group 5: Future Outlook - The transition to a light asset model poses risks, as maintaining service quality across franchises remains uncertain [15]. - The company must prioritize employee welfare and trust with partners to navigate the current economic downturn and regain market position [15].