Prolific Chinese brand Gionee known for their big-batteried smartphones when 3000mAh phones were an exception rather than a rule, has officially filed for bankruptcy in China. Specifically, a court in Shenzen has accepted the company’s application for liquidation bankruptcy. The company owes a total of RMB 20.2 billion to around 648 creditors, or around $3 billion.
While the company’s founder, Liu Lirong is still optimistic that the situation can be rectified in 3-5 years (and has hired restructuring consultants to this effect), the future is bleak for the brand. According to the chairman, Gionee was losing around RMB 100 million (around $14.4 a month from 2013 to 2015. The brand’s troubles have been exacerbated when Liu lost a massive RMB 1 billion bet in a casino.
While there’s a slim chance the Gionee emerges from bankruptcy a stronger brand, chances are that the company is done for.