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Vertu, Phone-Maker To the Rich, Says It's Broke (gizmodo.com)

Posted by msmash on from the when-life-gives-you-lemon dept.

A British-based luxury phone maker which made its name selling $50,000 smartphones decked out in alligator leather and titanium and fitted with sapphire screens, has applied to the courts to be placed in administration after running of out money to pay staff and suppliers, (paywalled) reports British outlet The Times. In a witness statement filed in the High Court in London yesterday, the report adds, the company's last remaining director Jean-Charles Charki, said that Vertu was insolvent and unable to meet its June 30 payroll obligations of about 500,000 euros. From an earlier report: According to a juicy new report in the Telegraph, employees are worried about the future of the company after noticing that production had been running at reduced capacity. Employees are apparently worried about their unpaid wages, as well as pension contributions taken out of their paychecks without being added into the company's retirement fund. Sources inside the company also told the Telegraph that Vertu has unpaid debts with suppliers such as Qualcomm and Microsoft, and bills from waste management, pest control, and other property services.

47 comments

  1. To the Rich by Anonymous Coward · · Score: 0

    If the "rich" had been buying these phones they wouldn't be broke......

    More like "phone maker to some fictional world full of Donald Trumps."

    1. Re:To the Rich by Anonymous Coward · · Score: 0

      Donald Trump's hands are probably too small to hold one of their phones.

    2. Re:To the Rich by MrKevvy · · Score: 1

      Donald Trump uses a plain off-the-shelf Samsung, probably a Galaxy S3.

      --
      -- Insert witty one-liner here. --
    3. Re:To the Rich by Anonymous Coward · · Score: 0

      A tiny phone for a man with a stubby penis and small hands.

    4. Re:To the Rich by clonehappy · · Score: 0

      Great, the POTUS uses a fucking shitty Android phone that probably has been exploited more than the local cut-rate whore behind Burger King.

    5. Re:To the Rich by Anonymous Coward · · Score: 0

      Great, the POTUS uses a fucking shitty Android phone that probably has been exploited more than the local cut-rate whore behind Burger King.

      The secret service controls the president's electronic devices.

    6. Re: To the Rich by Anonymous Coward · · Score: 0

      Whores dont work behind burger king you fucking idiot. They work walmart parking lots. Thats where i picked up your mother.

    7. Re:To the Rich by Anonymous Coward · · Score: 0

      There isn't a single phone the president could use that you wouldn't bellyache about. Get real.

    8. Re:To the Rich by Anonymous Coward · · Score: 0

      Awww, the Trump cuck is butthurt.

    9. Re:To the Rich by davester666 · · Score: 1

      Well then, they should take it away from him. Maybe also make him sit in the corner for a few weeks to think about what he did wrong.

      --
      Sleep your way to a whiter smile...date a dentist!
    10. Re: To the Rich by Anonymous Coward · · Score: 0

      As if you were never exploited and were never a whore! All human beings are whores including you bitch!

    11. Re: To the Rich by Anonymous Coward · · Score: 0

      Put it down, Donald.

    12. Re:To the Rich by default+luser · · Score: 1

      They did, back in March. Apparently you were too busy trolling on Slashdot to notice?

      http://bgr.com/2017/03/29/ipho...

      It was incredibly stupid of him to do that for so long, but before he was Emperor Cheeto , it didn't really matter when all he used it for was Witter.

      --

      Man is the animal that laughs.
      And occasionally whores for Karma.

  2. Waste of Money by Anonymous Coward · · Score: 0

    Don't get me wrong. I love nice phones. I have owned a number of "high end" handsets.

    With the smart phone market however and the massive changes in the technology coming so quickly anybody who bought one of these jewel encrusted monstrosities was just being wasteful.

    Their first series of phones were really cool. They got ridiculous really fast.

    1. Re:Waste of Money by ctilsie242 · · Score: 3, Interesting

      I will give them credit for phones that look sharp and a different style as compared to the minimalist design that we are seeing on smartphones. They also have a nice Android skin as well.

      However, of all things out there, electronics that are not "timeless" are not really status symbols past a certain point. Even Apple learned this with the Apple Watch Edition, which its five digit price tag apparently didn't have many takers since Apple wound up killing it, and moving the name to a ceramic model with a price an order of magnitude less.

      Electronics are not exactly the top dog for conspicuous consumption. The expensive smartphone of today would be a laughingstock six months from now when the latest models come out. Especially without another brand to attach it to. If a smartphone had a built in remote and key for a Bugatti, it might command a price premium. However, Vertu's name is recognized, but it isn't recognized enough to be worth the cost.

      Vertu definitely has a niche. If they sell the same products for the same price, but buy a license to use supercar logos or something with horse racing, they would have products that would be purchased. However, smartphones are something that might be used for 6-12 months and then tossed.

      Another possibility would have been to do like Louis Vuitton and make cases for existing devices. Supposedly, the quad-digit Eye-Trunk by LV sells like hotcakes, especially as part of a general accessory set.

    2. Re:Waste of Money by Anonymous Coward · · Score: 0

      That LV case looks like a very expensive way to get rid of rounded corners....

    3. Re:Waste of Money by Anonymous Coward · · Score: 0

      Better to get a vacheron constantin or patek philippe; something a little more timeless than a smartphone. (Pun not intended)

    4. Re: Waste of Money by mapkinase · · Score: 1

      Nice comment. I always thought that conspicuous consumption is a consequence of severe psychological problems.

      With the growing number of people who feel excluded from production, they will eventually become comfortable with that and stop buying crap.

      --
      I do not believe in karma. "Funny"=-6. Do good and forbid evil. Yours, Oft-Offtopic Flamebaiting Troll.
    5. Re:Waste of Money by unixisc · · Score: 1

      Did they make Windows phones? How do they have debt to Microsoft?

  3. Some of this sounds illegal? by cant_get_a_good_nick · · Score: 3, Insightful

    as well as pension contributions taken out of their paychecks without being added into the company's retirement fund

    Wouldn't this be fraud? Punishable by jail? Well, if we actually jailed non-brown people the way we jail brown people...

    1. Re:Some of this sounds illegal? by Anonymous Coward · · Score: 0

      No, plebe. Now bend over and spread those sexy butt cheeks.

    2. Re:Some of this sounds illegal? by whoever57 · · Score: 3, Informative

      , the company's last remaining director Jean-Charles Charki, said that Vertu was insolvent and unable to meet its June 30 payroll obligations of about 500,000 euros.

      Right there you have illegal behaviour under UK law.

      --
      The real "Libtards" are the Libertarians!
    3. Re:Some of this sounds illegal? by Anonymous Coward · · Score: 0

      as well as pension contributions taken out of their paychecks without being added into the company's retirement fund

      Wouldn't this be fraud? Punishable by jail? Well, if we actually jailed non-brown people the way we jail brown people...

      No, not at all. Fraud is when a jailable meat puppet person does it.
      If an immortal, intangible corporation does it, they call is a legal business strategy when they are simply rewarding themselves with huge bonuses and corporate executive benefits, cars, travel, expense accounts based on a SUPER optimistic business plan of
      1) Live it up,
      2) ...
      3) profit

      #2 is taking the money now and planning on being able to make up for deferred payments later. Most private hedge funds can LEGALLY take investor's money, go to Vegas and "run it up" and get away with just saying "oops, we tried" if they lose it.

      Capitalism, Yeah!

    4. Re:Some of this sounds illegal? by Hognoxious · · Score: 1

      Not any more. St Theresa has freed us from such socialist nonsense as being obliged to actually pay workers. The grubby little oiks ought to be grateful for having something to occupy them, given how atrocious daytime TV is. The devil makes work for idle hands, you know.

      #MBGA

      --
      Confucius say, "Find worm in apple - bad. Find half a worm - worse."
    5. Re:Some of this sounds illegal? by Shimbo · · Score: 1

      , the company's last remaining director Jean-Charles Charki, said that Vertu was insolvent and unable to meet its June 30 payroll obligations of about 500,000 euros.

      Right there you have illegal behaviour under UK law.

      And the offence would be? Trading wihile insolvent is illegal, and some of the other rumours sound very dubious. Applying for administration because you can't meet your bills (~chapter 11 for US readers) is however what you should legally be doing as a director.

    6. Re:Some of this sounds illegal? by whoever57 · · Score: 1

      And the offence would be? Trading wihile insolvent is illegal,

      If you cannot pay your bills at the end of the month, and other bills, such as tax payments were already delinquent, you were trading while insolvent.

      Applying for administration because you can't meet your bills (~chapter 11 for US readers) is however what you should legally be doing as a director.

      Yes, calling in the administrators is the correct thing to do, but it should have been done sooner, before the company had run out of cash.

      --
      The real "Libtards" are the Libertarians!
  4. 500,000 Euros? by PCM2 · · Score: 1

    Their payroll obligations are 500,000 Euros? How many employees do they have? Five?

    --
    Breakfast served all day!
    1. Re:500,000 Euros? by Anonymous Coward · · Score: 0

      1,000.

    2. Re:500,000 Euros? by Anonymous Coward · · Score: 0

      You make 100,000 Euros a month? Is your company hiring?

    3. Re:500,000 Euros? by Chris+Mattern · · Score: 1

      500,000 Euros for one pay period, which wouldn't be a year. Assuming it's every two weeks, they'd probably have more like over a hundred.

    4. Re:500,000 Euros? by Anonymous Coward · · Score: 0

      Don't do it! They're broke. Can't you read?

    5. Re:500,000 Euros? by Desler · · Score: 2

      They have about a thousand employees.

    6. Re:500,000 Euros? by whoever57 · · Score: 1

      If it's in the UK, the pay period is more likely to be one month.

      --
      The real "Libtards" are the Libertarians!
    7. Re:500,000 Euros? by RuffMasterD · · Score: 2

      CEO earns $480,000 per month. Everyone else earns $5000 per month.

      --
      Human Rights, Article 12: Freedom from Interference with Privacy, Family, Home and Correspondence
    8. Re:500,000 Euros? by guises · · Score: 1

      In the US this could easily be possible, but this is a British company so that probably isn't true. Link. Typical CEO pay ratio in the UK is 22 times the salary of the median employee.

  5. Well a couple phones would go out in my pocket by Anonymous Coward · · Score: 0

    screw em.

  6. Seriously, this was never a good business idea by Anonymous Coward · · Score: 0

    Considering that Apple and Samsung spend several billion dollars on smartphone development annually, there is no way a boutique manufacturer could possibly compete on quality or features for the actual phone.

    On top of that, it doesn't even make sense as a luxury product that unimaginative rich people could use to show off their wealth. Diamond covered Rolls Royces make much more sense as a hobby for Saudi princes than diamond covered smartphones.

    1. Re:Seriously, this was never a good business idea by ctilsie242 · · Score: 1

      At best they could piggyback on an existing OEM/ODM to have a custom unit. However, it will always be behind the curve, technologically. So, it would have to actually pack features that are more than increased CPU/RAM/storage. The push button concierge was a good idea, but it seems to be suspended until this September. However, at the wealth level it is being aimed it, people already have their own twin-key reps at their beck and call.

      The trick is to sell something that would be "worth" buying to the conspicuous consumption types. Electronics and smartphones have a market, but not at the price point Vertu is aiming at. If the price was lower, and it came with an option that the device could be used as a RFID pass to all airport lounges, it would be something execs would snap up. No, it wouldn't be money made on price, but relative volume, and still a low enough volume that the devices would be definitely uncommon.

    2. Re:Seriously, this was never a good business idea by Hognoxious · · Score: 1

      Do they actually make phones, or just re-shell existing ones?

      --
      Confucius say, "Find worm in apple - bad. Find half a worm - worse."
  7. Supplier issue. by T.E.D. · · Score: 2

    Their vacuum tube supplier went out of business.

    If you've never heard it before though, you really should. The sound is amazing. So much warmer than those digital cellphones.

    1. Re:Supplier issue. by Anonymous Coward · · Score: 0

      Yeah but they don't tickle your prostate as well as an iPhone shoved up your ass.

  8. So.... by Anonymous Coward · · Score: 0

    Capitalism wins again?

    1. Re:So.... by Anonymous Coward · · Score: 0

      In your ass, yes. It ejaculates its winning in your ass on a nightly basis.

  9. debts to Microsoft by Anonymous Coward · · Score: 0

    So they are selling super expensive Microsoft phones? What could possibly be the problem with that? Are they running out of Microsoft executives to purchase them?

  10. Support plans? by HalAtWork · · Score: 1

    Will anyone be buying them up and supporting the phones that have made it to market?

    --
    Twinstiq, game news