Selena Gomez's mom Mandy Teefey takes out loan to pay employees at singer's mental health startup
LOS ANGELES, CALIFORNIA: Selena Gomez's mother, Mandy Teefey, reportedly had to take out a loan against her home to pay salaries to her employees who work at the singer’s mental health startup, Wondermind.
Gomez, one of America’s richest self-made entrepreneurs, who is worth around $700 million, launched the company with her mother and Daniella Pierson in 2021.
But the firm began running out of funds and failed to pay workers, vendors, and freelancers starting in late March, as reported by Forbes on Saturday, May 10.
Spokesperson says Wondermind has been going ‘through its own set of growing pains’
Though staff have been given one missing paycheck, freelancers and vendors are still waiting for their tens of thousands of dollars. Wondermind also owes nearly $60,000 to a PR firm.
A spokesperson for the Los Angeles-based company said last week, “Like many startups, Wondermind has been working through its own set of growing pains.”
They added, however, that “in the coming days we will be transitioning into a new chapter for Wondermind, and continuing our important work in mental fitness that helps hundreds of thousands of people.”
The spokesperson said all outstanding payments will be made on Monday.
On the other hand, Teefey, the CEO of Wondermind, reportedly told staff last week that she took out a loan against her home to pay back the startup's outstanding debts.
Mandy Teefey blamed a delay in investor funding for crisis
This came after, in late March, Mandy Teefey sent an email to its employees after failing to pay for the second half of the month.
She reportedly wrote, “We apologize for the email on a wellness day. As you are aware, we have been working tirelessly to secure our next round of funding.”
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“An investor who was lined up to provide some critical bridge funding last week was not able to execute their transfer on time. While we have almost $8M committed to our series B and the bridge capital investor still working to send in funds, we find ourselves in a situation we have worked hard to avoid,” Teefey added.
Wondermind’s employees doubt Selena Gomez’s involvement in the startup
Meanwhile, amid all the uncertainties, a staff member of the company has shared their fear.
They said, “Even if this loan does come through, based on the debt and what everyone is owed, maybe everyone will be paid off… But then what?”
Another worker noted, “For what it's worth, I think Mandy believes in this company to a fault. She means well. Still there have been so many promises unkept. A new, big opportunity is always on the horizon but never comes. I'm sad to see things go this way.”
Regarding Gomez’s participation in the firm, they added, “But it seems like her involvement is minimal to non-existent at this point, or we probably wouldn't be here, right?”
