On-site | The former landmark has become an idle vacant building, Gome's "Nanjing's No. 1 Store" has dropped to 156 million yuan and still failed to sell, with plans to raise the price and auction again.

Everyday Economic News Reporter | Zhang Baolian Everydaily Economic News Editor | Chen Junjie

On March 22, at the intersection of Hongwu Road and Huaihai Road in Qinhuai District, Nanjing, the springtime Xinjiekou commercial district was already bustling with people. However, at No. 137 Hongwu Road (commonly known as “Nanjing Gome Electric Appliance Building”), adjacent to the southern extension of the pedestrian street, the main gates were tightly shut. The glass curtain wall was covered with thick dust. The signboard at the entrance had long been removed. The “GOME Gome” on the exterior facade was still eye-catching, but the LOGO (logo) was now visibly worn and mottled.

The once-glorious Xinjiekou Gome Electric Appliance Building Photo by Everyday Economic News Reporter Zhang Baolian

This building used to be a golden commercial landmark in Nanjing, and it was also Gome’s first store in Nanjing. Yet it has now run into repeated failures at the judicial auction market. On March 18, the property was auctioned again on Alibaba Assets. The starting price was 156 million yuan. Before the auction began, more than 4,000 people came to watch the listing. However, no one placed a bid throughout the entire auction process, and it was ultimately unsold.

On March 24, a reporter from the “Daily Economic News” noticed that the auction information from March 18 had been removed from Alibaba Assets. The reporter, acting as an investor, consulted the mortgagee, Chongqing Rural Commercial Bank Co., Ltd. Shapingba Branch (hereinafter referred to as “Chongqing Rural Commercial Bank Shapingba Branch”). The other party said that the property would still be listed for auction later. “Our latest appraisal price has come out. We are preparing to raise the price before listing again. It is currently still in the internal approval process.” When the reporter asked by how much the price would be increased, the other party said they could issue an intent letter for a quote to inquire about it.

Once a landmark, now an idle vacant building

According to information, the scope of the building to be disposed of covers floors 1–5 and the mezzanine. The total gross floor area is 16,474.49 square meters. On March 22, the reporter from the “Daily Economic News” visited the site in person and saw that the large advertising screen on the exterior facade had long been turned off. On both sides of the first floor, only a small number of street-facing shops were still operating normally. The glass door at the main entrance was tightly locked. The sales area was completely sealed off. There was no staff stationed at the entrance. On the door leaf, old stickers bearing “Gome” and the name of a certain consumer electronics brand were still left behind.

Looking inward through the glass display window, the interior still retains the layout of the former appliance sales hall. Shelves, escalators, and other facilities have not yet been fully dismantled. Cardboard boxes, plastic bottles, and other miscellaneous items are scattered on the floor. In some corners, there are still unopened mobile phone packaging boxes. Cabinets and ladders are casually pushed to one side. Broken stones and paper scraps are scattered across the ground.

An asset appraisal report from December 2023 shows that the building was completed in 1996, meaning it has already been in existence for 30 years. The land use right termination date is September 2043, leaving less than 20 years of remaining land use.

Since March 2024, when it was first listed on the judicial auction platform, this listing has repeatedly ended in an unsold result. The starting price has dropped from 267 million yuan in the first auction down to 156 million yuan. Cumulatively, the price has been reduced by more than 110 million yuan, yet no bidder has registered to place a bid.

The reporter noted that the information on the Alibaba Assets judicial auction platform shows that the latest auction for this listing began on March 18, with a starting price of 156 million yuan, and a deposit of 16 million yuan. The court adopted a one-time bid auction rule, but in the end the listing was again unsold, with 0 registrations and 0 bids.

This commercial asset, located on the southern extension of Xinjiekou in the core business district, has become a “slow-moving item” in the auction market.

The asset itself has shortcomings—who will take it over?

The judicial disposition of the Nanjing Gome Electric Appliance Building traces its root cause directly to the debt quagmire of the Gome group. According to industrial and commercial information, the right holder of this building is Nanjing Pengze Investment Co., Ltd. (hereinafter referred to as “Nanjing Pengze”).

And the address of this company is also No. 137 Hongwu Road. At the entrance, two intricately designed stone elephant statues stand on either side of the stair steps. The glass door at the entrance has been fully locked. Metal rolling shutters cover the view inside. A row of “Gome” stickers is still attached to the door. On the left wall, a gold nameplate bears the words “Nanjing Pengze Investment Co., Ltd.,” indicating that this place used to be Nanjing Pengze’s office.

Nanjing Pengze Photo by Everyday Economic News Reporter Zhang Baolian

By looking through the equity relationships, it can be seen that Nanjing Pengze is 100% held by Gome Electric Appliances Co., Ltd. It is the key commercial asset entity of the Gome system’s layout in Nanjing. The auction, in effect, is one part of the Gome system’s debt repayment. At present, Gome Electric Appliances has been entangled in numerous judicial cases and has become a dishonest party subject to enforcement.

The reporter learned from a notice posted on the building’s exterior wall from the Chengyu Financial Court, “(2023) Yu 87 Zhi 2039,” that the core claim holder in this auction is Chongqing Rural Commercial Bank Shapingba Branch. In October 2023, in a loan dispute case filed pre-trial between the bank and Chongqing Gome Electric Appliances Co., Ltd., Gome Electric Appliances Co., Ltd., and Nanjing Pengze, the People’s Court of Shapingba District, Chongqing preserved and sealed Nanjing Pengze’s Hongwu Road 137 building, which was used to provide mortgage security.

According to an appraisal report issued by Chongqing Jinhang Asset Appraisal Land and Real Estate Appraisal Co., Ltd., in December 2023, the market value of the building was 382 million yuan. In other words, the latest auction price is 40% of the initial appraisal value.

Beyond debt and tax-related costs, the operational shortcomings of the asset itself have also become an important obstacle. The appraisal report shows that the building’s internal layout is that of a traditional home appliance sales hall, which is disconnected from the operational needs of a commercial complex in today’s Xinjiekou commercial district. Future renovation and tenant recruitment costs are also indispensable.

At the same time, the report also notes that the property where the appraised parcel is located has a self-owned garage and a limited number of outdoor parking spaces. The number of parking spots is small, and parking convenience is poor. The reporter observed on site that the parking garage is already fairly old and cannot meet the parking needs of modern commercial operations. In addition, in recent years, with ongoing transformation in Xinjiekou’s traditional department store formats, brick-and-mortar commercial businesses are facing dilemmas such as changes in customer traffic composition and mounting pressure on rents. For this aging commercial asset to be refreshed, comprehensive renovation efforts are still required.

On March 22, the reporter, acting as an investor, consulted the Pacific Tower property service center for this building and learned that the property fees are currently paid on schedule. Because the building has been idle for a long time, it does not involve water and electricity charges.

According to relevant rules for judicial auctions in China, creditors may choose to apply to settle debts with the asset. After a bank holds the asset, it can revitalize it through self-management, leasing, and agreement-based transfer, among other methods. Or, within the scope permitted by law, the starting auction price can be further lowered to trigger a new round of auction. Or, third-party professional asset operation institutions may be introduced to reduce operational risks through cooperative disposal.

On March 25, the reporter, acting as an investor, called the integrated auction firm that previously released the auction information for this building. The other party said that after last year’s failed auction, the property had already been used to settle the debt with the bank as debt compensation “in kind.” He also revealed that there had been investors in Nanjing who offered a higher price than 156 million yuan, but due to various issues the deal ultimately could not be completed.

If the price is increased and the listing is uploaded again in the future, who will end up taking No. 137 Hongwu Road? Against the backdrop of accelerating upgrades of physical retail, how to revitalize this kind of prime-location commercial asset with outdated hardware and complicated ownership has become a problem that needs to be addressed urgently not only in Xinjiekou, but also across many established commercial districts nationwide.

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