Vertu Shutting Down Manufacturing Operations

Vertu’s financial and corporate situation hasn’t been stable for quite some time and now, to few people’s surprise, the company is partly shutting down. Only four months ago it was purchased by Murat Hakan Uzan, an entrepreneur, but that purchase didn’t enable the luxury smartphone maker to avoid bankruptcy.

The company has always operated in a difficult market. While people are often willing to spend $1,000 for a phone, Vertu handsets can cost significantly more. It has sold devices with price tags as high as $52,000.

Although its manufacturing operations are closing, Vertu isn’t going away entirely. Uzan is keeping its brand, technology, and design licenses. He’s also working with TCL, a Chinese manufacturer, which could lead to Vertu-branded devices being created by that company.

This move came in response to creditors refusing to accept Uzan’s offer to settle £128 million in debt with just £1.9 million.