Gionee Faces Bankrupcy, As CEO Gambles and Losses Company Fund

Chinese smartphone manufacturer Gionee has filed for bankruptcy. As 20 suppliers filed an application for bankruptcy reorganization with the Shenzhen Intermediate People’s Court, it has come to light that the smartphone manufacturer is undergoing a bad phase at present. what could be the cause?

The reason behind the sudden bankruptcy of the smartphone maker has also been stated by a Chinese language Jiemian website. As reported by the website, the Chairman and founder of Gionee, Liu Lirong lost 10 Million Yuan or $1.4 Billion dollars of company fund in gambling at a Casino in Saipan, China. However, the chairman has also clarified that not all money of the company fund is being misappropriated by him as he actually lost $144 million in the gambling.

Gionee, since its launch, was one of the leading smartphone brands of China and had also been doing well in India and over here in Africa With a particular feature quality of selfie-focused smartphone, Gionee had about 4.6 percent market share in India in Q1 2017. Not only this, Gionee had also made a place in the list of the top five fastest growing brands costing Rs 15,000 to 30,000 rupee. But in 2018’s second quarter, the smartphone brand faced a sharp decline in worldwide shipments, No wonder We haven’t seen new smartphones been launched by the company lately,

The report equally has it that the company major debts belongs to the bank, while the other percentage goes to the investors and unpaid advertisers,

Hope fully There will scale through this and give us more smarter feature android smartphones, the reason behind the CEOs action( betting with companies fund) still baffles me, can betting be so addictive?

Credicts: sentinelassam.com