The Madrid-based wi-fi company Gowex, who supply free wifi services to many major cities throughout the world, have gone into voluntary bankruptcy after the founder and chief executive finally admitted that the company’s accounts were a falsification.
On Thursday, the US firm Gotham City Research had described Gowex as a ‘charade’ and said that its revenues were ‘at most’ 10% of those reported. Shares in the company went into freefall before trading was suspended on Thursday, 60% of the company’s value having been wiped out.
Founder and chief executive Jenaro Garcia Martin initially denied there was any wrongdoing, describing the reports as defamatory, but later resigned, stating that the accounts ‘do not show a full and fair view of the company’s situation’.
It seems that the accounts had been falsified for the past four years. With the company unlikely to be able to meet its commitments regarding currently maturing debt payments, it has filed a request for voluntary bankruptcy