Vertu

With the headquarters in Great Britain Vertu specializes in production of mobile phones with the body from stainless steel, skin, precious materials and stones. The cost of the most expensive model ever released Vertu (till December, 2011), Boucheron Cobra, made 217 thousand euros. In June, 2012 it was reported that the price of the Vertu mobile phones can reach half a million euro.

Besides, the company renders to owners of the phones exclusive services, including the round-the-clock concierge service worldwide.

Performance Indicators

Sales of Vertu in 2014, according to data of analysts of Euromonitor, made a little more than $1 billion that is only 2% more, than in the 2013th.

History

2017

The factory is liquidated, all employees will be dismissed

The attempt of the current owner of Vertu Corporation Limited (VCL) company to save it from bankruptcy in court ended with a total failure, the British The Telegraph reports. Murat Hakan Uzan is the Turkish entrepreneur who is living nowadays in exile in Paris and personally owning the Vertu trademark,^[1] made an attempt of the redemption of the company from her creditors^[2].

Within the plan provided to them in the Supreme Court, Uzan offered creditors 1.9 million pounds sterling (about $2.4 million) while the debt of the company is estimated at 128 million pounds sterling (about $165 million) now.

Turning of work of the only factory Vertu with the subsequent dismissal about 200 of her employees will become result of unsuccessful attempt of rescue of the company, according to The Financial Times. The factory on assembly of the Vertu smartphones was located in the British Hampshire.

Despite the actual bankruptcy of Vertu and lack of perspectives on rescue of original production division of the company, the owner of a brand Murat Hakan Uzan does not lose hope for its revival.

In addition to actually Vertu trademark, Uzan also possesses the production technology and a number of licenses for design of luxury smartphones. According to FT with reference to the source close familiar with Uzan's plans, the businessman "is going to revive the company in the future".

Even if the Vertu brand will be saved, The Telegraph writes, hardly it will be able to return on the market in the former unique quality of the producer of unique devices. The staff of Vertu factory assembled phones using such unique materials as sapphire crystal, titanium, gold and other precious metals, ostrich's feathers and gemstones.

Delay of salaries

At the end of June, 2017 it became known of serious financial problems of Vertu because of which the staff of the company cannot get paid. Such information was at the disposal of the British edition The Telegraph.

According to it, Vertu does not pay to suppliers of service and delivery of component parts. In particular, payment is waited by Acora IT company and producer of microprocessors Qualcomm. Microsoft corporation which saved the building of the headquarters of Vertu in property lease of placements for total amount of $3.2 million is not paid.

Vertu does not pay employees salary

CBRE companies, the providing service in property management (carrying out of garbage, liquidation of insects, etc.), Vertu owed $540 thousand. With respect thereto CBRE stopped service of the building of Vertu. Besides, the producer of luxury phones delays payments in the pension fund.

Vertu has a debt to employees. Promised to pay to about 200 employees salary at the end of June, 2017, however it did not occur. Workers sent the management the official letter with the requirement to explain why the pension contributions subtracted from their salaries did not go to the pension fund within several months.

For several years of Vertu it was repeatedly resold. In March, 2017 the company was purchased by the Cyprian firm Baferton belonging to the Turkish businessman Hakan Uzan for $61 million. 

Gary Chen, the manager of the Hong Kong hedge fund who possessed Vertu before, claims that Uzan not completely paid purchase of the company though he at the time of the conclusion of the transaction provided a screenshot of the document on bank transfer.

Mister Uzan did not do transfer through bank. I still did not receive any payment from it — Gary Chen reported.

Meanwhile, Hakan Uzan's lawyers reported to the edition that Gary Chen provided documents from which followed that the financial position of Vertu was better, than actually. Besides, Chen was accused of "illegal use of company assets".^[3]

2015: Vertu is sold to Chinese

At the beginning of November, 2015 it became known of Vertu sale to the Chinese investors. This transaction as the The Financial Times newspaper notes, confirms popularity of bonus brands in Asia.

The producer of the luxury Vertu smartphones the Hong Kong investment fund Godin Holdings with assistance of the international investors whose names are not revealed purchased from the private Swedish company EQT VI. The cost of the transaction is also unknown. EQT purchased Vertu at Nokia for 200 million euros in 2012.

The Chinese investors purchased at the Swedish fund EQT VI of the producer of the luxury Vertu smartphones

After the declaration of Vertu sale the CEO of the company Massimiliano Pogliani announced the resignation after three years of the management. He noted that "time for transfer reins of government to a new command came".

"We are sure that during operating time Vertu became stronger, having taken the leading position in the market of luxury mobile phones now. Today Vertu is ready to take the next step in product development together with the new owner" — the partner of EQT Caspar Callerstrom reported.

During the presence in the Vertu market — from 2002 to 2015 — the company sold about 450 thousand devices at the average price of a product more than in $7 thousand. Devices gather on the plant in the British county Hampshire, in the same place there is a headquarters of the producer. Vertu will save head office and the enterprise in Hampshire in which about 450 people at the general staff of the company in 900 employees work.

New owners of Vertu will be engaged in promoting of a brand in China and Asia while all world market of luxury phones is in stagnation. Sales of these gadgets in 2014, according to data of analysts of Euromonitor, made a little more than $1 billion that is only 2% more, than in the 2013th.^[4]

2012: Nokia sells the company to EQT VI investment fund

On April 30, 2012 there were messages that Nokia is close to sale of Vertu of the British investment company Permira.

In June, 2012 it became known that Nokia will leave a controlling stake of the Vertu Corporation company belonging to it. The EQT VI investment group will become the new owner of 90% of stocks of the largest mobile phone manufacturer from precious metals. Nokia will reserve a minority stake in 10% of stocks. The transaction price, as well as its other conditions, does not reveal, however it is known that it should come to the end in the second half of 2012 in case of obtaining all necessary permissions from regulating authorities.

New owners of Vertu are sure of advantage of purchase.

'Vertu, with its famous brand, reputation of the indisputable leader of the industry and attractive indicators of growth, perfectly keeps within an investment strategy of EQT VI. We are glad to an opportunity to develop Vertu as the autonomous company and to stimulate the further growth of a segment of luxury mobile phones due to considerable investments into development of network of sales, marketing and new product development", - the representative of EQT Partners Jan Stalberg^[5] reported^[5].

2011: Revenue of 266 million euros. Nokia looks for the buyer

• Buyers of expensive phones seldom pay attention to functionality, and it was never advantage of Vertu. However in October, 2011 the producer nevertheless decided to give in to a global trend and released the first smartphone with the 3.5-inch touch screen - Vertu Constellation, at the price from 4.4 to 10.9 thousand euros.

• In December, 2011 it became known that Nokia looks for the buyer of the subsidiary company releasing the elite Vertu phones. The most probable candidates are other producers of devices of this category. Together with Vertu the market is divided by Mobiado, Gresso (the Russian company) and some other brands^[6].

Sale can be a part of restructuring in Nokia which actively there began the new chief executive Stephen Elop who came in September, 2010. From the date of Elop appointment the company already closed a number of projects, including Ovi Music Unlimited service and development of the Symbian platform which was translated to outsourcing in Accenture.

• At the end of 2011 revenue of Vertu made 266 million euros.

1998: Nokia founds Vertu

Vertu was founded in 1998 by the Finnish company Nokia.

Notes