Gionee is the manufacturer of Q Mobile in Pakistan, however, it is reported that the Chinese manufacturer is declaring bankruptcy in China. According to the local news, Gionee has been having a bad year and that the company has filed for liquidation bankruptcy at Huaxing Bank, submitting its application to a court in Shenzhen, which has been accepted.
Liu Liron, founder of Gionee hopes that the company can bounce back within 3-5 years. Currently, the company owes CNY 20.2 billion (around $3 billion) to a total of 648 creditors in China with half of those creditors being banks. Furthermore, Gionee hasn’t been able to pay its suppliers and ad agencies either.
Reportedly what worsened the company’s finances was the fact that founder Liu lost a massive CNY 1 billion (~$144 million) that he bet in a casino recently. Regarding his gambling he added that he may have borrowed the company’s funds and also said that Gionee had been losing CNY 100 million (~$14.4 million) per month from 2013 to 2015, with the losses doubling over the past two years.
The bankruptcy of Gionee could potentially mean the manufacturer shutting down and putting the faith of Q mobile in jeopardy.
