According to Securities Times, the company has asked its suppliers to work on a deal as it has failed to pay them. The report said that 20 suppliers had filed for bankruptcy reorganisation with the Shenzhen Intermediate People's Court.
Even though Gionee’s chairman Liu Lirong<\/a> claims that he didn’t misappropriate Gionee’s cash to gamble, he also suggested that he may have borrowed company funds.
Gionee had entered the Indian market in 2013 and in a couple of years was able to capture significant market share.
In the first quarter of 2017, Gionee had a 4.6% market share and was among the top players in the selfie-phones segment in 2017. But in the second and third quarter of this year, Gionee saw a sharp decline.
In June, Gionee was in talks to offload its 74% shareholding to Pardeep Jain, the promoter of Indian handset brand Karbonn. The existing minority shareholder and the company’s former India CEO Arvind R Vohra with 26% equity was to stay invested.
However, the company hasn’t exited the market yet and is still selling devices<\/a> in China and India.
\n\n
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