(Yicai) July 2 -- Better Life Group, a leading regional operator of supermarkets and department stores in China, said its asset reorganization plan has been approved by a court.

Seventeen external investors swill inject CNY2.5 billion (USD344 million) into Better Life and its 14 subsidiaries as part of the asset reorganization, it announced yesterday. Better Life said it expects the reorganization to boost liquidity, slash financial costs, and clear out most of its debt, aiding the group’s business recovery and operational improvement.

Shares of Better Life [SHE: 002251] rose 0.3 percent to close at CNY3.39 (47 US cents) apiece in Shenzhen today. The stock has fallen about 16 percent since the end of last year.

Founded in 1995, the company operates a range of supermarkets, department stores, and shopping centers, mainly serving consumers in central and southern China with fresh produce, groceries, clothing, household goods, and electronics.

A creditor applied to the Xiangtan Intermediate People’s Court for Better Life’s debt restructuring last July because the Hunan province-based firm defaulted and was insolvent. The judicial green light for Better Life to draw up a bankruptcy restructuring plan was given in October.

Four of the new investors are industrial concerns, and the rest are financial firms, Yicai learned.

One of the industrial investors is Baitube Culture Communication, a multi-channel network agency for incubating and empowering fast-moving consumer goods brands in beauty, fashion, and food. The Chengdu-based firm plans to set up a joint venture with Better Life to integrate the online and offline sales of its self-operated products and build a related supply chain system. 

The three other industrial investors will also use their advantages to help Better Life improve its business, such as enhancing its ability to procure and supply high-quality fresh farm produce, cutting procurement costs, and using digital technologies to boost its supply chain capabilities and operational efficiency.

Editors: Tang Shihua, Futura Costaglione