Gionee faces bankruptcy and may soon face liquidation

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Gionee is meeting its fat. After failing to deliver enough smartphones in the market, the company is on the verge of bankruptcy. The company owes millions of dollar to financial institutions, suppliers, and advertising and marketing agencies. The total debt is around CNY17 billion.

We fear that if restructuring the company is not a viable option, then the company will go into liquidation. In a meeting between representatives from Gionee and its suppliers, the company tried to strike a deal with major suppliers. Well, still 400 smaller companies are yet to hear what will happen with the money they are owed.

Gionee faces bankruptcy and may soon face liquidation

Also, reports claim that the meeting is happening after 20 major suppliers filed a lawsuit with the Shenzhen People’s Court for missed payments from Gionee. Looking at the fact that Gionee is constantly losing money at a rate of 1 to 200 million per month, the partners are backing up from the company.

Liu Lirong said in his defense that the company is his only source of income and “it is inevitable that there will be some public activities, funded by the company”. Reports from China claim the gambling debt is around CNY 10 billion. Also, a debt of 6 billion is a part of the operative loss.

Though Gionee is on the verge of liquidation, the handsets are still available to purchase at T-Mall and offline retailers. Gionee M7 is still the most selling smartphone from the brand, and it will keep selling until the units are sold out.