(Yicai Global) Dec. 30 -- Shares of Gome Retail Holdings dropped after the troubled Chinese electronics retailer said a group of suppliers has filed bankruptcy petitions against its subsidiary, claiming the unit has failed to pay them. Gome denied the claims.

Gome [HKG: 0493] closed 4.4 percent lower at 11 Hong Kong cents (1.4 US cents) today, bringing the decline in its share price to 83 percent this year.

No legal documents exist to support the claim that Gome Appliances owes the suppliers CNY4.7 million (USD675,500), its Beijing-based parent company said in a stock exchange filing yesterday. 

The bankruptcy petitions against Gome Appliances were filed recently in the Beijing No. 1 Intermediate People’s Court by Shenyang Shengxingda Kitchen and Bathroom Products, Liaoning Supor Cookware, Harbin Supor Cookware, and Changchun Supor Cookware, Gome said.

Gome’s retail business has more than 10,000 creditors, according to documents a company insider showed Yicai Global late yesterday. The firm lacks funding channels and financial support at the moment because of the impact of its debt crisis, but has the chance to activate some financing channels and regain vitality by bringing in external investors and creditors as shareholders through a restructuring.

In addition to suppliers, Gome employees also are trying to recover money that the company owes them.

As a stop-gap measure, Gome announced on Dec. 14 that founder and controlling shareholder Huang Guangyu had arranged a second interest-free loan this month for the cash-strapped retailer. His wholly-owned firm Sinning Crown was to lend HKD200 (USD25.7 million) at no interest. Huang also made a HKD150 million interest-free loan to Gome on Dec. 8.

Editors: Liao Shumin, Futura Costaglione