Tuesday October 18, 2011
Wal-Mart setback as China CEO resigns
SHANGHAI: The head of Wal-Mart Stores Inc's China business has resigned citing personal reasons, after the world's largest retailer ran into trouble with Chinese authorities leading to store closures and employee detentions.
The departure of China CEO Ed Chan, along with senior vice president of human resources Clara Wong, is another setback for Wal-Mart which is facing stiff competition from local firms in the strategically important market.
The company, which recently celebrated its 15th anniversary in China, closed more than a dozen stores in central China last week following allegations they sold regular pork as organic pork over the past two years.
Authorities in Chongqing have arrested two Wal-Mart China employees and detained 37 others over the incident. Reuters