Gionee declares bankruptcy, goes into liquidation
We got good news and bad news of Gionee. The good news is that there might be a film about what happened one day. The bad news is that the company officially failed.
A court in Shenzhen has accepted Huaxing Bank’s request for liquidation bankruptcy. This can still be a company reorganization–restructuring consultants were hired by Gionee last week. Liu Lirong, the founder, believes that the company can turn its fortunes in three to five years.
Gionee owes 648 creditors a total of CNY 20,2 billion (about $ 3 billion). Approximately half of the debt to banks. The company failed to pay suppliers earlier this year. Neither are advertising agencies paid.
Gionee declares bankruptcy, enters liquidation
Gionee ‘s monetary problems were exacerbated by the loss of a CNY 1 billion bet in a casino by Liu –founder and President. It’s a whopping 144 million dollars. He claims that he did not use company money, but confesses that he may have ” borrowed company funds. ” As we said, it would make a pretty movie.
Liu claims, by comparison, that the company lost approximately CNY 100 million ($ 14.4 million) a month between 2013 and 2015. In the last two years, losses per month have doubled.
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