LeEco is in deep troubles
Chinese technology giant LeEco is fighting financial troubles at various units. Jia Yueting, the founder of LeEco, stepped down as chief executive of the company earlier this year. The company is sued due to failure to pay interest on bank loans taken out to fund its smartphone business. Personal assets of Jia worth 1.24B Yuan have reportedly been frozen by a Shanghai court.
LeEco is now facing a cash crunch and has been forced to slash costs, including making job cuts. Meanwhile LeEco’s smartphone unit including Coolpad, has stopped selling all smartphone. Coolpad shares listed in Hong Kong have been suspended from trade for three months.
Rumors also said that suppliers for LeEco’s smartphone business had not been paid. This is the most difficult year in LeEco’s history.