Gionee Facing Bankruptcy As Chairman Gambles Away $144M
Chinese smartphone maker Gionee, one of the best cell phone producers in the Indian market, is on the verge of bankruptcy.
There was a time when Gionee was one of the top smartphone manufacturers in the Indian market.
The OEM was responsible for rolling out some handsets that met the exact demands of the Indian consumer a few years ago. However, the company has lost out on its popularity in recent times and eventually has come to the extent of shutting shops.
Securities Times reports that Gionee is facing bankruptcy situation. The company has reportedly failed to pay its debt from various suppliers and has discussed a possible arrangement for a deal that satisfies their expectations. As many as 20 suppliers filed for a bankruptcy reorganisation with the Shenzhen Intermediate People’s Court, claims the report.
Moreover, it has likewise gone to the spotlight that Gionee administrator Liu Lirong has lost on a gigantic lump of Gionee’s assets. The executive was accounted for to lose around ten billion yuan ($1.4 billion) while gambling. Nonetheless, Securities Times revealed that Lirong conceded losing around one billion yuan (roughly $144 million).
Lirong admitted to the betting debacle however demanded that he wasn’t utilizing Gionee’s assets for his own reasons. In any case, he admitted to acquiring a portion of the organization’s assets. This has allegedly driven Gionee to a disturbing circumstance, expediting the organization the skirt of chapter 11.
Gionee had been one of the conspicuous players in the Indian cell phone, testing the set up brands, for example, challenging the established brands such as Samsung and Nokia at one point of time.. However, the company has lately been unable to compete against the slew of Chinese brands such as Xiaomi, Huawei, OPPO and Vivo, with products that haven’t been able to capture the attention of the Indian consumers.
Gionee was attributed with catching up to 4.6 percent of selfie cell phone piece of the overall industry mid 2017 as per discoveries of Counterpoint Research. In any case, the brand has from that point forward observed a lofty decrease in its offer close by other contending OEMs, for example, Micromax and Sony.
It stays to be seen whether Gionee could endure the emergency and recapture its offer in the market that it had been getting a charge out of once in its primes.