In one more Chinese cell phone organization going belly up, Gionee, which is said to owe CNY 20.2 billion (almost $3 billion) to 648 loan bosses, has purportedly declared financial insolvency.
As indicated by media reports, a court in Shenzhen has acknowledged the Gionee application for liquidation chapter 11.
A report in The South China Morning Post a month ago said that the author of Shenzhen-based Gionee conceded he may have utilized organization resources for bet at a Hong Kong-recorded gambling club in Saipan.
In a meeting with Securities Times, Liu Lirong, Gionee's Chairman and Chief Executive, "conceded that Gionee's aggregate obligations add up to CNY 17 billion, with CNY 10 billion of this owed to banks, CNY 5 billion to upstream providers and around 2 billion to promoting organizations".
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At the point when asked the amount he lost betting, Liu stated, "more than CNY 1 billion", which may really be to the tune of CNY 10 billion ($1.44 billion).
Gionee, which positioned behind Apple in the 6th place for handset deals in China a year ago, started confronting troubles when providers stopped segment deals in the wake of neglecting to get installments for a while.
"For correlation, Liu claims that the organization was losing around CNY 100 million ($14.4 million) multi month somewhere in the range of 2013 and 2015. The misfortunes every month multiplied over the most recent two years," Gsmarena.com refered to an iFeng answer to guarantee.
Established in 2002, Gionee was at one time a standard brand in China and India, moving about 40 million handsets in 2016.
Gionee, which set up its quality in India in 2012, asserted in February this year to have retail nearness in more than 42,000 stores and has 600 elite administration focuses in the nation. It additionally asserted a client base of 1.25 crore in the nation.
In India, in the wake of running local tasks for just about five years, Gionee India's CEO and Managing Director Arvind Vohra ventured down in August 2017. David Chang, Global Sales Director for Gionee, at that point began driving the India activities.
In the primary quarter of 2018, Gionee sent an unsurpassed low of 150,000 units with shipments down 90 percent year on year, as indicated by Counterpoint Research.
Consummation a short rest in the midst of rebuilding designs in India, Chinese cell phone producer Gionee in April propelled two cell phones.
There has been no buzz from Gionee in India from that point forward.
Gionee is the second organization after Chinese combination LeEco that close activities in India a year ago after money related emergency hit it hard.
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