Luxury mobile brand Vertu about to shutdown after defaulting in debt payments

Luxury mobile brand Vertu, which sold mobile phones in the range of $14,000 and more for a niche luxury market, is reportedly shutting down its operation after last-minute attempts to save the struggling phone maker failed. Vertu's accounting deficit of nearly GBP 128 million, as pointed out by BBC,  could not be resolved even after Turkish businessman Murat Hakan Uzan bought the company earlier this year.

By defaulting to pay the required deficit, Vertu's liquidation would result in the loss of nearly 200 of its employees. Though, as reported by the Daily Telegraph, Murat Uzan sought to buy the manufacturer out of administration in a pre-packaged deal of GBP 1.9 million, the offer was rejected by the creditors.

Beginning as a arm of Nokia in 1998, Vertu had become famous for creating handsets with exorbitant pricetags. The company employed leather, alligator and lizard skin, precious metals, titanium, and jewels, as well as synthetic sapphire for its phone screens and body. Even though there was a customer base ready to complete the hefty payment for getting their hands on an exclusive Vertu phone, it is apparent that they were no enough to keep the company afloat.

However, as Uzan still has the design and technology licenses, it may be possible that Vertu-branded smartphones may be produced from TCL factories, according to Android Police. But it still remains to be seen what companies out there are looking to make the ultra-luxury handsets a viable business.


Published Date: Jul 14, 2017 18:12 PM | Updated Date: Jul 14, 2017 18:12 PM