Lvmama shuts down temporarily for cash flow issues

Hu Min
Lvmama, a Shanghai-based online travel agency, has suspended operations after accruing 2 billion yuan in debt.
Hu Min

Lvmama, a Shanghai-based online travel operator, has suspended operations due to financial difficulties, the firm told Shanghai Daily on Thursday.

Web users have been complaining that the company's website, app, and social media accounts have been offline for months.

Lvmama acknowledged that its accounts and domain name had been sealed because it was sued by banks over cash flow problems.

It blamed its failure to recover arrears from companies as well as difficulties in securing loans for the financial problems, although the majority of its employees remain on the job.

The company blamed the COVID-19 pandemic for badly affecting the cultural and tourism industries.

The debts exceeded 2 billion yuan (US$278.5million), forcing some banks to sue the company.

The company's website, app, and mini-programs are no longer operational, but its employees are working in rotation.

"We are actively communicating with various parties, trying to work out a solution. We just want more time," an employee from the company said.

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