McBags closes down. Mbaobao has encountered financing difficulties, will substantially lay off employees, and stop part of the new product development, resulting in the closure of the company. Qiu Yudong, CEO of Mbaobao, said at the 2014 Brand E-commerce (Haishu) Summit that between 2008 and 2012, Mbaobao had encountered inventory backlogs, product inefficiencies, fierce brand competition, and poor conversion rates in the marketplace, leading to its closure.