Cash-strapped LeEco’s CEO pledges to take all responsibility, repay debts

Patrick T. Fallon | Bloomberg | Getty Images

Jia Yueting, founder and chief executive officer of LeEco speaks at the 2017 Consumer Electronics Show (CES) in Las Vegas, Nevada, U.S., on Tuesday, Jan. 3, 2017.

It’s a big promise for Jia, who founded Beijing-based LeEco. The company was once a tech darling success story, starting with online video streaming before quickly expanding to smartphones and electric vehicles, and even launching in India and the U.S.

But the company’s fast ascent didn’t appear to be fueled by basic business sense, with LeEco spending far beyond its means and failing to replenish its coffers. The fallout from its cash crunch continued to widen: Earlier this week, 1.2 billion yuan (around $176.35 million) in assets owned by LeEco subsidiaries, Jia and his wife were reportedly frozen by a Shanghai court over unpaid debts.