JIAOZUO, China — Haoyou Tyre Co. Ltd. — a.k.a. Good Friend Tyre — is auctioning lots of warehoused tires following a court-ordered bankruptcy restructuring.
Jiaozuo, Henan Province-based Haoyou, considered as recently as 2016 to be among China's 30 largest tire producers, filed for and was granted bankruptcy protection in July 2019, according to public records.
The company, along with three smaller, financially stressed tire makers in Jiaozuo all controlled by Haoyou Chairman Wang Liqi, also were ordered to proceed with joint bankruptcy restructuring in a series of court rulings dated March 30-April 1, 2020.
The four companies are putting up their tires in two lots on Alibaba's auction website. Bidding will start on April 28
One of the lots contains 71,718 passenger car tires, under various labels and specifications, with a starting price at approximately $450,000. The other includes 6,138 truck and bus tires with a starting price at $400,000.
Haoyou Tire ranked 75th in the 2017 Tire Business Global Tire Report Top 75 tire producers with annual sales of $126.5 million.
NOTE: A previous version of this story made a reference in error to Haoyu Tyre Group Co. Ltd., which is a different company based in Shandong Province.