Vertu, the UK phone maker, is due to close its factory after its owner’s bankruptcy bids failed, causing 200 employees to stop working.
Based in the rural Hampshire town of the Krukham Church, the British factory Vertu was more than a workshop, where titanium staff, jeweled inlaid hand-held phones, personally collected each phone. Sold at a boutique store in Mayfair in London, as well as through sales outlets at Silverridges and Harrods stores, Vertu phones began over £ 5,000 and extended to more than £ 20,000. The company once sold a series of eight phones for £ 213,000.
Vertu’s collapse comes as owner Murat Hakan Ozan, a Paris-based Turkish exile who bought the company in March and tried to buy business from the administration for 1.9 million pounds, but this was rejected in the Supreme Court on July 12, accounting for 128 million pounds, telegraph. A person familiar with the situation told the Financial Times that Ozan would retain the ownership of Vertu brand, technology and design licenses and plans to rebuild the company.
Vertu, criticized by the press technology to sell outdated phones wrapped in luxury materials, has not launched a new product since 2015. During a visit earlier that year, Max Bogliani CEO of Ebtimes Oak suggested that his company plans to enter the wearable market with its own luxury smart watch. This product never arrived, and instead the company continued to sell a signature collection of basic phones and smart phone lines called Touch Signature, Constellation and Aster.
“Our best efforts to achieve pre-mobilization management have failed because the financial requirements set out in the negotiations have exceeded the point where the new company had an opportunity to continue financially, and no other part of the group has been affected by this development,” said Vertu’s spokesman.