On August 31, Juren Education said it will close down for good.
The 27-year-old off-campus education agency is one the oldest of its kind. In a statement, Juren said it could no longer provide courses for students from kindergarten to high school due to financial struggles.
Juren was established in 1994 to provide Chinese, English, math and non-curriculum classes to kids and teenagers. The company had more than 100 branches and 200 thousand students.
Juren has planned 27 IPOs, without ever actually making it to market. The “Double Reduction” – reducing the homework burden and the ban of profits – have been too much for the somewhat antiquated institution.
In October 2018, OneSmart International Education Group bought Juren Education for US$100 million (645 million yuan). Juren’s bankruptcy has put OneSmart at risk of delisting.
LUO Moming, CEO of Juren also said that OneSmart was withdrawing support as it also struggles to survive after the "double reduction" took effect. In the first half of this year, OneSmart made a net loss of US$50 million. The company’s stock price has fallen to US$0.53. OneSmart runs the risk of delisting if its stock price remains below US$1 for 30 days.