“Billionaire” Selena Gomez‘s mental health website startup, Wondermind, couldn’t pay its employees twice in recent weeks.
Selena, 32, is best known as pop singer Justin Bieber’s ex. Their on-and-off relationship lasted from 2010 to 2018.
Selena’s mom, Mandy Teefey, told employees she took out a loan against her house just to make payroll.
Mandy (seated) co-founded Wondermind website in 2020 with Selena (left) and Daniella Pierson (right).
Wondermind was marketed as a “sexier, more entertaining competitor” to health websites like Psychology Today and WebMD.
But Wondermind ran out of cash and couldn’t pay its employees and vendors beginning in March, according to Forbes.
The Los Angeles-based company pays 15 employees to publish articles, interviews and podcasts about mental health topics on the website.
Advertising didn’t bring in enough revenue to keep the company afloat. Wondermind missed 2 employee pay periods in recent weeks.
Wondermind‘s CEO Mandy Teefey called a meeting last week and told employees she took out a home equity loan to pay the company’s outstanding debts, including payroll.
Mandy said she could pay one of their paychecks. But the second paycheck is still outstanding.
Specifics about the meeting leaked to the local media and the story made national headlines because Mandy’s daughter, Selena, reportedly has a net worth of $700 million.
A Wondermind spokesperson said all of the company’s debts will be paid on Monday, May 12.
“Like many startups, Wondermind has been working through its own set of growing pains,” the spokesperson told Forbes in a written statement.
The spokesperson said the startup will continue its important work in mental fitness helping thousands of people.
Selena is one of America’s richest celebrities. Her wealth comes from her beauty cosmetics line, which is valued at $320 million.
In 2017, Selena (right) underwent a kidney transplant. Her best friend, Francia Raisa (left), donated one of her kidneys. Francia later expressed regret because Selena allegedly stopped returning her calls and stopped paying her living expenses.
Other A-listers who are in serious financial trouble include “billionaires” Jay-Z and his wife, pop and country music singer Beyoncé.
In an amended extortion lawsuit against Houston attorney Tony Buzbee, Jay-Z said a lender rejected Roc Nation’s application for a $115 million loan, and Jay-Z was denied a $55 million personal line of credit.
Lenders usually deny loans and lines of credit when the applicants can’t prove they have enough assets or cash flow to repay the loans on time.
The power couple is reportedly “cash poor,” meaning they have wealth tied up in assets but no liquid cash to pay their day-to-day expenses.
Beyoncé’s Cowboy Carter tour is reportedly in shambles due to low ticket sales. Soon, she will run out of money to pay her dancers, band, caterers, airlines, and production crew.
