(Yicai) Feb. 1 -- Lvmama has temporarily halted operations as a result of a cash flow problem and is striving to resolve the matter, the Chinese e-tourism website told Yicai following reports that bookings could not be made and most of the firm’s staff had been laid off.

“The three-year Covid-19 pandemic has hit the tourism industry and companies hard,” Lvmama said yesterday. “The parent company, Feilvwan, is owed more than CNY2 billion (USD279 million) by business partners and is unable to recover it in the short term.

“In addition, some banks have withdrawn loans, stopped lending, or indirectly forced CNY500 million (USD70.4 million) to be repaid ahead of time, causing difficulties in the company's cash flow,” the Shanghai-based firm said. Some lenders have even sued, while its corporate accounts and domain name have been closed, it added.

Lvmama said it is in talks with related parties to seek a solution.

Reports spread on microblogging website Weibo earlier yesterday saying that Lvmama had laid off most of its employees, its website, app, and mini program had stopped working, and it had not uploaded posts to its WeChat social media accounts for months. 

Lvmama’s app and mini program are unavailable, with only some of its WeChat accounts having stopped posting, while others were still active as of last December, Yicai learned. 

Established in 2008, Lvmama offers booking services for scenic spots, resort hotels, and transportation as well as tailor-made tours in China and outside of the country.

Editor: Martim Kadiev