David Lee, CEO of Shanghai-based catalogue and online male clothing seller PPG (www.ppg.cn), was unsuccessful in negotiating with American retailer Sears (Nasdaq: SHLD) for an investment of $100 million, reports ChinaByte quoting an unnamed insider close to the CEO. PPG currently generates less than RMB 4 million in monthly sales revenue, said the insider. Chief operating officer Li Yongjin previously said that PPG was targeting RMB 1 billion in 2008 sales revenue. PPG spent first-round funding of $6 million on company operations and has not yet received its second- and third-round funding, according to the insider.

Previous reports said PPG had received fourth-round investment of $100 million from an American department store and over $80 million in its first three rounds of fundraising from TDF Capital, JAFCO Asia, KPCB and San Shan Capital Partners. PPG threatened legal action in response to November reports that David Lee had absconded with $20 million in company funds.