Gionee goes bankrupt owing nearly $2.9 billion; hopes to make comeback in a few years

Gionee might not be a familiar name to most, but the company has been producing smartphones for quite some time and even supplies BLU with some of its handsets. Unfortunately, the firm is filing for bankruptcy.

The courts accepted the bankruptcy application, which will now put the company at a crossroads. As of August, Gionee owes ¥20.2 billion, which is roughly around $2.9 billion USD, to 648 creditors. Despite this immense amount being owed, the founder of Gionee, Liu Lirong, states that he'd like to see a turnaround in three to five years. As of last week, a restructuring consultant was hired to create a plan for the organization that would allow it to emerge out of this situation.

For those in the United States and other regions where Gionee's presence wasn't all that prevalent, this shouldn't be much of a problem. But those in Asia will most likely see less of the brand over the coming year and will be forced to shift to different companies' handsets, which shouldn't be an issue with juggernauts like Xiaomi, OPPO, and many more being available.

Source: Phoenix New Media via GSMArena

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