Vertu stops production due to bankruptcy

The British luxury phone maker has had to close its factory after failing to negotiate successfully with its creditors.

Owner Murat Hakan Uzan has failed to save Vertu from bankruptcy after offering to pay creditors £1.9m of its £128m debt. According to The Financial Times and The Telegraph, Vertu's UK factories will have to stop operating, causing 200 employees to lose their jobs.

All Vertu factories in the UK will have to close. Photo: BBC

However, Mr. Uzan will still retain the Vertu brand, technology and design license. According to a source close to the Vertu boss, he has plans to restore the brand.

In March this year, Murat Hakan Uzan bought Vertu from Chinese company Godin Holdings when the company was said to be facing bankruptcy since last year. Previously, Vertu failed to provide a financial report for 2015.

Vertu was founded in 1998 and is part of the Nokia brand. In 2012, the Finnish company sold Vertu to EQT. In 2015, Vertu was acquired by Godin Holdings. Since its inception, Vertu has sold more than 500,000 of its luxury phones.

According to VNE