Core Viewpoint - The article discusses the downfall of Zhong Xuegao, a once-prominent ice cream brand known as the "Hermès of ice cream," which has entered bankruptcy proceedings due to an inability to repay debts and insufficient assets to cover liabilities [3][5][26]. Group 1: Company Background and Growth - Zhong Xuegao was founded in 2018 by Lin Sheng, targeting the high-end ice cream market and quickly gaining traction with significant investments totaling 1.3 billion yuan from various venture capital firms [11][12]. - The brand achieved remarkable sales growth, reaching 1 billion yuan in revenue within its first year and surpassing 1 billion yuan in 2021, becoming a leading player in the new consumption sector [13]. - Lin Sheng's marketing strategies, including collaborations with influencers and unique product offerings, helped the brand gain substantial market visibility and consumer interest [10][12]. Group 2: Crisis and Challenges - Starting in 2021, the company faced a series of crises, including negative publicity from Lin Sheng's controversial statements and product quality concerns, leading to a decline in consumer trust [15][16]. - Increased competition from established brands like Mengniu and Yili, which began to focus on online sales, put additional pressure on Zhong Xuegao's market position [16][17]. - The company's aggressive expansion strategy, including the introduction of lower-priced sub-brands, failed to resonate with consumers, leading to further financial strain [21][22]. Group 3: Bankruptcy and Aftermath - By 2023, Zhong Xuegao had laid off over half of its employees, and by 2025, only two employees remained on the payroll, highlighting the severe impact of financial difficulties [23][26]. - Lin Sheng attempted to salvage the company by selling products through live streaming, but these efforts did not significantly improve the situation, and the brand's reputation continued to suffer [24][25]. - Ultimately, the bankruptcy proceedings confirmed the end of Zhong Xuegao's operations, marking the decline of a once-celebrated brand in the ice cream industry [26].