Vertu, Brute? Luxury smartphone maker 'folds under financial pressure'

Maker of $280k smartphones forced to shut down manufacturing - report

British luxury smartphone maker Vertu, which sold phones worth as much as $280,000, is shutting down its manufacturing arm, with the loss of almost 200 jobs.

The premium brand, which was originally part of Nokia, was faced with severe financial difficulties, and according to The Telegraph has today lost a High Court battle that would have allowed owner Murat Hakan Uzan to buy the firm out of administration for 1.9 million.

Uzan was seeking a pre-pack administration deal to let the company shake off an accounting deficit in excess of 128 million. The company also reportedly owes more than 2.5 million to Microsoft, from which it sub-leases its headquarters.

"Our best efforts to achieve a pre-pack administration have failed because the financial requirements specified within the negotiations went beyond the point where the new company had a chance of financial viability," a Vertu spokesman told the Telegraph. "No other part of the group is affected by this development."

Advertisement
Advertisement - Article continues below
Advertisement - Article continues below

Vertu is known for producing extravagant and outrageously expensive luxury handsets, which start at $10,000 and are frequently made from materials like snakeskin, gold and precious stones. But it has also attracted criticism for its use of outdated Android software.

Business has apparently been slow, however, with sales of just 9,000 units last year. A legacy manufacturer from the days before the iPhone, Vertu was slow to adapt to the smartphone revolution, something which has been blamed for the company's reversal in fortunes.

Uzan, a Turkish exile currently living in Paris, remains the owner of Vertu's various design and technology licenses, and the Financial Times reports that a source close to him indicates he intends to restart the company in some form.

IT Pro has contacted Vertu for comment.

Featured Resources

Digitally perfecting the supply chain

How new technologies are being leveraged to transform the manufacturing supply chain

Download now

Three keys to maximise application migration and modernisation success

Harness the benefits that modernised applications can offer

Download now

Your enterprise cloud solutions guide

Infrastructure designed to meet your company's IT needs for next-generation cloud applications

Download now

The 3 approaches of Breach and Attack Simulation technologies

A guide to the nuances of BAS, helping you stay one step ahead of cyber criminals

Download now
Advertisement

Most Popular

Visit/operating-systems/25802/17-windows-10-problems-and-how-to-fix-them
operating systems

17 Windows 10 problems - and how to fix them

13 Jan 2020
Visit/security/data-breaches/354611/misconfigured-security-command-exposes-250-million-microsoft-customer
data breaches

Misconfigured security command exposes 250 million Microsoft customer records

23 Jan 2020
Visit/microsoft-windows/32066/what-to-do-if-youre-still-running-windows-7
Microsoft Windows

What to do if you're still running Windows 7

14 Jan 2020
Visit/hardware/354584/windows-10-and-the-tools-for-agile-working
Sponsored

Windows 10 and the tools for agile working

20 Jan 2020