Its name derives from the tale of a poor woodcutter in ancient Persia who finds riches in a hidden cave. Alibaba Group Holding Ltd. (BABA.US; 9988.HK) seemed to follow that basic storyline for most of its life, rising from obscurity to become China’s leading e-commerce company as Chinese consumers embraced online buying.
But the last two years have been difficult ones for the company, which has become caught up in what looks like a period of indecision on how to regain its former glory. The changes taking place inside the company were in focus once more this week, when Alibaba announced it was selling the Intime department store chain it acquired in stages starting in 2017.
According to the announcement, Alibaba will sell the chain to men’s apparel maker Youngor Group, as well as Intime’s management. Alibaba said it will receive gross proceeds of 7.4 billion yuan ($1 billion) from the sale and record an even larger loss of 9.3 billion yuan.