Jia Yueting, LeEco’s founder, has been ordered to return to China by the country’s Securities Regulatory Commission by the end of the month to deal with the company’s massive debts. LeEco’s crisis was that it grew too fast.
The company kept adding to its product offerings, shifting from an online streaming service into hardware like TVs and cars. The issue was it wasn’t making money and did not have a solid financial foundation in place to support this rapid growth. Jia is now on China’s list of official debt defaulters.