Core Viewpoint - The company "Huan Niu Cake House" announced its closure due to rising costs, intense market competition, and internal management failures, leading to an inability to continue providing products and services [3][4][9] Group 1: Company Announcement - On June 15, Huan Niu Cake House published a farewell announcement on WeChat, stating that it would cease operations and cooperate with relevant departments to formulate a disposal plan for customer complaints regarding stored value cards [3][4] - The announcement indicated that all member stored value amounts were held in the company's account, and the company would actively work on a resolution for these funds [3][4] - Franchisees and employees were reportedly unaware of the closure until the announcement was made, leading to confusion and a lack of communication from the headquarters [6][9] Group 2: Financial and Operational Background - Huan Niu Cake House was founded in 2013 and targeted young consumers with a variety of baked goods [7] - In 2022, the company raised nearly $10 million in Series A funding, which was intended for store expansion and brand upgrades, with a monthly sales target of approximately 500,000 yuan per standard store [7] - Prior to the closure, the company had plans to open 100 new stores nationwide by 2025 through a franchise model [8][9] Group 3: Recent Developments - Just a week before the closure announcement, the company claimed it was not going bankrupt and was still operating normally, despite facing legal restrictions on its major shareholder due to unresolved debts [8][9] - The company had around 60 stores primarily located in Hangzhou, with a few in Ningbo and Shaoxing, falling short of its goal of 100 stores [9]