Gome may sell stake to stay afloat

Troubled Chinese electrical retailer Gome may offload part of its stake to outside investors to shore up its cash flow and counter the retail market slowdown, according to analysts.

Gome, whose founder Huang Guangyu is currently being investigated for his role in a share trading scandal, is increasingly looking at the stake sale as a viable option as banks are also reluctant to sanction any fresh loans, they said.

Besides bank loans, there have also been media reports that the company is already facing difficulties in getting short-term credit from suppliers.