Chen Xiao came to Gome as nothing more than one of the many senior executives in November 2006 after his company, Paradise, of which he was chairman, was gobbled up by his new employer, Huang Guangyu.

Both men were prominent players in the fiercely competitive consumer electronics market of China, but their personalities and business philosophies are poles apart. The reserved and mild-mannered Chen, a tall and lean-looking native of Shanghai, stands in sharp contrast to the flamboyant and pudgy Huang, who exemplifies the take-no-prisoner business style of a Chaoshan entrepreneur.

Nobody had expected Chen to last more than a few months in the go-go corporate culture of Gome.

But, in what has been widely seen as a dramatic twist of fate, Chen has taken the helm at one of China's largest and best known big-box retail chains in January from its now deposed chairman, who is known to be assisting the Beijing police in an investigation of irregular share trading involving a number of listed companies.

The unassuming 50-year-old Chen, with a limp from a bout of polio during childhood, now finds himself occupying the top slot at a time when the company is facing its toughest challenge since its founding by Huang and his close associates in 1987. Huang's alleged involvement in the share scandal late last year has thrown Gome into disarray, and the company's shares have been suspended from trading on the Hong Kong stock exchange.

Gome is now facing a real threat of its finances drying up as bankers become cautious on new lending. To make matters worse, the beleaguered company also had to contend with an all-out suppliers' revolt. Under Huang's leadership, Gome was known for being tough on its suppliers, squeezing their margins and extending payment periods. Now, the suppliers are obviously hitting back when the chips are down.

Gome's problems have also been magnified by the downturn in demand for big-ticket electrical appliances as the Chinese economy starts feeling the impact of the global recession.

Softening demand has, in turn, brought to the forefront Gome's past excesses. In an almost single-minded pursuit of market share, the company had neglected issues like customer service and store profitability.