Wal-Mart Stores' Asia chief takes over China operations following resignation of Ed Chan amid pork-labeling scandal
October 18, 2011
– The head of Wal-Mart Stores Inc. in Asia, Scott Price, has assumed control of China operations following the resignation of Ed Chan, who left amid food-labeling investigation by China's government, Bloomberg reported Oct. 17.
Wal-Mart has said Chan's departure was not connected to the food scandal, in which Chinese government officials accused the company of labeling ordinary pork as organic.
The goverment temporarily suspended operations at all 13 Wal-Mart stores in the southwestern China city of Chongqing. It has also arrested two company employees and detained at least 25.
Wal-Mart has been in China since 1996. It reported China revenue of US$7.5 billion in 2010, representing nearly 2% of the company's revenue.
In the last five years, Wal-Mart has been cited in Chongqing for 21 instances of selling expired or uninspected food and false advertising.
The primary source of this article is Bloomberg, New York, New York, on Oct. 18, 2011.