Η Gionee is on the verge of bankruptcy due to its debts to financial institutions, suppliers and advertising agencies and marketing agencies. Its total debt is about 17 billion CNY (about $ 2,45 billion), "thanks" to the contribution of its president, Liu Lirong, who lost a total of $ 1 billion to the casino.
In a meeting between company representatives and suppliers, Gionee reportedly reached some sort of agreement with major suppliers, but almost 400 smaller companies, but it has not yet been clarified what will happen to the remaining money owed. If its debt restructuring will not be viable, then Gionee will be liquidated (bankruptcy).
The Beijing Youth Daily reported that the meeting took place after the lawsuit filed before the Shenzhen People's Court, for the lost payments by Gionee, the 20 most important suppliers. The partners have lost confidence in the smartphone maker, after reports that the founder loses money at a rate of 1 to 200 million per month.
Liu Lirong said in his defense that the company is his only source of income and "it is inevitable that there will be some publicly funded public activities". Other reports from China claim that the gambling debt is around CNY 10 billion, with the remaining 6 billion coming from other forms of abuse. There are also several functional losses.
Although the company is virtually bankrupt, its devices continue to sell to both T-Malls and offline retailers. The resellers stated in the post that the Gionee M7 is still the best-selling device from the company, and that they will continue to issue a standard warranty until stocks run out.
[the_ad_group id = ”966 ″]
