Spanish Wi‑Fi provider Gowex has filed for bankruptcy after revelations that the company falsified its accounts for at least four years. The disclosure has left employees in a “state of complete shock,” according to their written statement.
Gowex CEO Jenaro García Martín resigned after informing the board of directors. In a statement published to Euronext, García Martín admitted before board members that the company’s financial accounts for the past four years “do not show a full and fair view of the company’s situation,” and he accepted responsibility for the falsification.
The board concluded that the company may not be able to meet its financial obligations when they become due and decided to file for voluntary insolvency. The company said it would consider additional measures required to protect its interests and would inform the market immediately if it adopts them.
Research firm Gotham City Research had previously claimed that more than 90% of Gowex’s reported revenues were fabricated and summarized its findings by asserting that “Gowex’s largest customer was really itself.” Gowex initially called the Gotham City report “defamatory,” but García Martín’s admission changed the company’s public stance.
Following his resignation, García Martín wrote on Twitter: “I made the deposition and confession. I want to collaborate with the justice. I face the consequences.”
Gotham City Research issued an updated statement acknowledging the rarity of such a public confession. The firm said it specializes in exposing fraud and described García Martín’s admission as “very rare,” even calling it “courageous and honourable,” while noting that time will determine its long‑term significance. The firm added that it hopes the confession marks the start of a life of honesty, restitution, and redemption for García Martín.
Gowex employees said they would continue to support customers and maintain operations for the time being. Their statement noted concern for customers affected by ongoing projects funded by grants that run for several years, and stressed the reputational damage suffered by staff who “categorically reject” the conduct that led to the scandal.
Workers emphasized that they are remaining at their posts to keep providing service and to try to move the company forward despite the circumstances. They disassociated themselves entirely from the falsified accounts and said they are considering legal action as parties affected and as victims of the situation, which they are still coming to terms with. The statement concluded by calling for prompt action and support from the authorities.
Corporate failures happen for many reasons, and some companies manage to emerge from bankruptcy through restructuring. For example, US LTE provider LightSquared filed for Chapter 11 in 2012 after regulators blocked its high‑speed wireless plans over concerns about interference with GPS. Two years later, LightSquared unveiled a restructuring plan that ceded roughly three quarters of its equity to a new investor group.
In Gowex’s case, the company’s future is uncertain. The bankruptcy filing and the CEO’s confession have set in motion legal and financial processes that will determine what comes next for Gowex, its employees, and its customers. For García Martín, legal proceedings will play a decisive role in his personal outcome.