Gionee’s Luck Runs Out? Company Faces Bankruptcy After CEO Loses $144 Million While Gambling

Chinese smartphone maker Gionee is reported the verge of bankruptcy. The company’s board has not revealed the real reason behind the same, but it is touted that CEO and Chairman Liu Lirong’s gambling addiction is to blame.

He reportedly lost over 10 billion yuan which is $1.4 billion while gambling at a casino in Saipan but later admitted that he lost only one billion yuan which is $144 million, as per reports by Gadget Now.

Interestingly, the chairman claims that he did no use Gionee’s money to gamble but may have borrowed company funds.

Gionee has failed to pay suppliers and has accumulated debt. “Nearly 20 suppliers applied for bankruptcy and reorganisation of Jinli to Shenzhen Intermediate People's Court after a few months of debt collection on 20 November," according to a report.

In 2018 the company reportedly planned to invest Rs 650 crore in the Indian market to become one among top five smartphone manufacturing brands. “Our strategy is around capturing 20 per cent share in smartphones prices in the range of Rs 8000-20,000," said a company official.