Luxury Phone-Maker Vertu Collapses after accumulating $165 Million in Debt and a Fail Attempt to Rescue it

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Luxury Phone-Maker Vertu Collapses after accumulating $165 Million in Debt and a Fail Attempt to Rescue it

Let’s find out more about why luxury phone-maker Vertu collapses! Stay with us and find out everything we know about this subject!

Turns out the British company has gone bankrupt after accumulating debts of $165 million.

Don’t know who Vertu is?

The British company is famous for its much luxurious, jewel-encrusted Android smartphones.

After the bankrupt, approx. 178 workers from UK will lose their jobs, all of it after a failed rescue attempt to save it.

Last month, its owner, Turkish tycoon Hakan Uzan, who bought the firm in March, had the company under administration.

Despite the fact that they made luxury handsets worth thousands of pounds, the company had to fill for bankrupt after amassing debts of $165 million.

Their jewel-encrusted Android smartphones, assembled by hand, used to sell for up to $50,000.

We’ve featured them in some of our stories as they used to make some of the most expensive phones in the world.

They used materials that brought the phones’ exuberant prices, even though they used old versions of Android in its projects.

What kind of phones?

Among Vertu’s popular handsets you could often find hand-stitched ostrich leather and sapphire screens. On top of that, each person that purchased a phone from them had their signature inscribed on them.

Luxury Phone-Maker Vertu Collapses after accumulating $165 Million in Debt and a Fail Attempt to Rescue it
Luxury Phone-Maker Vertu Collapses after accumulating $165 Million in Debt and a Fail Attempt to Rescue it

Its owner wanted to buy the company back, who is currently living in exile in Paris. But at the High Court on Money, he withdrawn the application and the company announced that they couldn’t save it.

However, Mr Uzan will retain the Vertu brand, technology and licenses.

Luxury Phone-Maker Vertu Collapses after accumulating $165 Million in Debt and a Fail Attempt to Rescue it
Luxury Phone-Maker Vertu Collapses after accumulating $165 Million in Debt and a Fail Attempt to Rescue it

‘It is very unusual, they hand make the phone at incredibly low volumes and they were incredibly high-priced,’ Ian Fogg, an analyst at IHS Technology, told the BBC.

“It is a difficult material to work with,” Mr Fogg told the BBC. “One practical benefit is that the smartphone screen is made incredibly difficult to break.”

Luxury Phone-Maker Vertu Collapses after accumulating $165 Million in Debt and a Fail Attempt to Rescue it
Luxury Phone-Maker Vertu Collapses after accumulating $165 Million in Debt and a Fail Attempt to Rescue it

They had to compete with other business who offered an alternative.

That meant that wealthy customers could choose the handset they wanted and add the “bling” later.

Luxury Phone-Maker Vertu Collapses after accumulating $165 Million in Debt and a Fail Attempt to Rescue it
Luxury Phone-Maker Vertu Collapses after accumulating $165 Million in Debt and a Fail Attempt to Rescue it |source: dailymail.co.uk|

When Nokia found the company?

Nokia founded Vertu in 1998, and sold it in 2012. The following year the company switched from using Nokia’s Symbian operating system on its devices to Google’s Android.

What do you think about this collapse? Do you think they could’ve done more to save it?

Leave your opinion in the comments, and don’t forget sharing is caring!

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