Selena Gomez’s startup faces financial woes

American singer Selena Gomez’s first mental fitness startup, Wondermind, is under scrutiny.

The 32-year-old actress’ mother, Mandy Teefey, who also serves as the company CEO, reportedly took out a loan on her behalf to help fund the business and pay employees.

According to reports, Teefey faced a financial crisis in March when the company allegedly began running out of funds to pay its estimated 15 workers, excluding freelancers and vendors, in March.

Employees have reportedly received compensation for only one out of every two missed pay cheques, while vendors and freelancers are still awaiting “hundreds of thousands” in unpaid invoices.

Wondermind has assured that remaining payments will be made on Monday after the issue was addressed.

In internal emails sent in March, her mother informed staff that their health insurance provider would be discontinuing employee benefits.

The message read, “We apologies for the email on a wellness day,” and added “We have been putting in a lot of effort to get our next round of funding, as you know.”

Employees were also told they would need to enrol in COBRA coverage, which allows individuals who have lost their jobs or had their hours reduced to temporarily maintain their health insurance.

What is Selena Gomez‘s Wondermind?

Selena co-founded Wondermind, a media platform with the mission of destigmatising and democratising mental health, alongside her mother Mandy Teefey. 

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