Wednesday, October 4

Chinese Brand Gionee to go Bankrupt, Chairman Gambles $144 Million

A Chinese smartphone brand called Gionee that came into existence a few years back is now stooping down. The company seems to be in trouble and is reportedly on the verge of going bankrupt.

However, the reason for the company going bankrupt has not been disclosed yet. On the other hand, a report by Chinese website Jiemian claimed that gambling habit of Gionee chairman Liu Liron seems to have brought Gionee in such a situation. Taking this into consideration, the company’s chairman lost more than 10 billion yuan ($1.4 billion) gambling in Saipan. Lirong clarified this with Securities Times, saying the figure was closer to over one billion yuan ($144 million) instead.

With this, Gionee’s fortunes have shifted unfavorably. Also, the company is said to have failed paying suppliers. Around 20 core suppliers have filed a legal suit against Gionee for failing to make payment. They have stated that if the company fails to make payments, then they might be looking at its liquidation.

The chairman is said to have misappropriated company’s funds for gambling, and, in his defense, he has said the Gionee is the only source of his income, and that the use of company funds for public and private activities is inevitable.

On the other hand, the Liron claims that he did no use Gionee’s money to gamble but admitted to may have “borrowed company funds.”