Gionee Goes Bankrupt! Has $3 Billion in Debt

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Gionee commenced in 2002 in China and made to India all the way in 2012. Since then, it was a fine mid-range smartphone maker which has flourished in both Indian and Chinese markets. At one point, it even stood in the top ten list of handset sales, right after Apple. From that thrive to bankrupt, Gionee falls down a brick-by-brick.

Gionee Goes Bankrupt! Has $3 Billion in Debt

Gionee Goes Bankrupt
Gionee Goes Bankrupt

The reason? Non-payment of dues!

It was recorded that Gionee has a debt piled up to $3Billion (20.2Billion CNY). Some major suppliers and Huaxing Bank (creditors) has filed the case against the company. It was observed that there are a total of 648 creditors waiting for payments. They include Advertising agencies, Banks and Suppliers.

According to IFENG, Gionee is struggling since past few months and have officially filed for bankruptcy and liquidation to the courts, which was then accented by the Shenzhen-based court.

This dramatic fall was actually started by its own Founder-cum-Chairman Liu Lirong, who had utilized the company’s funds to gamble in Saipan Casinos in Hong Kong and eventually lost. The failed bets summed up to $1.44Billion (10Billion CNY) which put Gionee into much tougher times than its falling sales.

Though going in liquidation pursuit, Gionee is still trying to save its ass and revert back afresh. The company has hired consultants last week to reorganize the structure and stand for another “three-to-five years” – believed by Liu Lirong.

Gionee has launched two new models in April this year and no word since then. A quick fact – Gionee is the second company to wrap up its operations after LeEco.

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