King Crab CEO reveals the truth behind the decision to temporarily stop developing the restaurant chain

(NLDO) – The founder of Vua Cua admits failure in using high-interest loans

On April 2, Ms. Doan Thi Anh Thu, founder of the Vua Cua restaurant chain, continued to post on her personal page to clarify the current status of the restaurant chain as well as the real reason behind the decision to temporarily stop project development.

The founder of Vua Cua expressed her anger at the information that Vua Cua is bankrupt or closed. She affirmed that the information is not correct. Vua Cua is only temporarily suspending development, not closing, the restaurants and company offices are still operating normally.

In this article, Ms. Thu clearly explains the reason for temporarily stopping the development of Vua Cua, which stems from a loan of 3 billion VND (with an interest rate of 18%/year) from a shareholder holding 2.5% of shares, lasting from 2018 to present.

"I am very grateful for being able to borrow money without collateral. But after I paid interest for more than 4 years, even during COVID-19, the company was really exhausted. I emailed to ask for a reduction in interest and to allow the company to gradually pay off the principal, but the shareholders did not approve the interest reduction and were forced to pay the accrued interest of 370 million plus the principal of 3 billion VND immediately," Ms. Thu added.

King Crab became famous after the show "Billion Dollar Deal"

Ms. Thu said that after the pandemic, the economy was difficult, the company did not have new capital but had to do it itself and pay off loans from old suppliers to Beacon Fund (which had just completed payment), so it was no longer able to "bear interest". At this time, that shareholder sued Vua Cua in court to get more than 300 million VND in interest but did not agree to pay the principal.

Ms. Thu admitted that Vua Cua is having accumulated losses and debts to pay, but she has not lost shareholders' capital and is in the process of returning their investment capital.

"By the way, I also want young entrepreneurs not to borrow money at interest rates like me, measure your strength, work on a small scale and do small jobs. Learn from my failure in using high-interest loans" - Ms. Thu advised.

King Crab CEO affirms that restaurants and company offices are still operating normally.

The Vua Cua chain founded by Ms. Thu is famous in the F&B startup community when it successfully raised capital in the program "Billion Dollar Deal" season 4. Vua Cua received an investment of 3.5 billion VND from Shark Lien in exchange for 10% of shares and then a second round of capital investment, but the amount was not disclosed.

Currently, Ms. Thu runs Vua Cua remotely because she has settled in the US. However, Ms. Thu still returns to Vietnam regularly because she is an assistant to Ms. Dziem Chinh - President of C&T Produce - a company specializing in importing agricultural products and food from Asia - responsible for purchasing Vietnamese goods for export to the US.

Source: https://nld.com.vn/ceo-vua-cua-tiet-lo-su-that-dang-quyet-dinh-tam-ngung-phat-trien-chuoi-nha-hang-196250402132418036.htm