Selena Gomez's Billionaire Status Questioned After Her Mum Takes Out Loan To Pay Startup Staff

In a startling turn of events, billionaire singer Selena Gomez's mental health startup faces financial turmoil, allegedly missing payments for office staff. Questions are now swirling about Gomez's billionaire status, and why her mother would need to take out a loan to pay for the startup's employee paychecks.

Financial Troubles at Wondermind

Wondermind, the mental health platform co-founded by Gomez and her mother, Mandy Teefey, has reportedly hit a rough patch. In late March, the company faced a cash shortfall, unable to pay its estimated 15 staff members and vendors. Forbes reported that Teefey, who is also the CEO, had to resort to taking out a loan against her home to settle employee wages.

Employees have supposedly been paid for one of two missed paychecks, but vendors and freelancers still await hundreds of thousands of pounds. Allegedly, around £50,000 (roughly $65,000 USD) is owed to a PR firm, and many freelancers have not received payment for months. A Wondermind spokesperson told Forbes that the company has 'rectified' the situation and expects the remaining payments to be settled on the following Monday.

The Roots of the Crisis

Sources suggest the company's financial troubles began in January 2023, when Teefey became the sole CEO after Daniella Pierson, the original co-founder, stepped down. Employees claim Teefey lacked the operational experience to steer Wondermind through its challenges.

Allegedly, she turned down lucrative brand deals, including a multimillion-pound agreement with Airbnb, because they involved Gomez's involvement—decisions that purportedly worsened the company's financial situation.

Emma Wright, Wondermind's chief of staff, dismissed these claims as 'insanely, grossly misleading,' praising Teefey's leadership. She stated that Teefey 'leads with just pure grace,' focusing on keeping staff's livelihoods intact. Yet, critics argue the company's woes reflect deeper issues, compounded by the fact that Gomez's involvement appears minimal, despite her role as a co-founder.

Questions Over Gomez's Wealth and Role

Gomez's financial success is well-documented. She reached billionaire status in September 2024, with a net worth of £1 billion (approximately $1.3 billion USD). The majority of her wealth stems from her cosmetics brand, Rare Beauty, launched in February 2019. Sales soared, with revenue reaching nearly £300 million (about $370 million USD) in 2023, making it one of the most popular brands among younger consumers.

While her acting and singing careers, along with real estate investments, contribute to her fortune, Rare Beauty remains the cornerstone of her billionaire status. Public records show she owns the company outright, and her social media influence—over 423 million followers—has bolstered its reach and sales.

Wondermind's Troubled Waters and Gomez's Involvement

Despite the initial hype, Wondermind's financial difficulties cast doubt on Gomez's billionaire image. The startup, founded in 2021 with an initial seed funding of £4 million (roughly $5 million USD), raised a further £4 million in 2022 at a valuation of £80 million ($100 million USD). Yet, recent reports indicate serious cash-flow problems.

Employees allege that Teefey's decision to turn down deals—like the Airbnb contract—has hampered revenue. Critics also note that Gomez's involvement appears limited; she is listed as the 'chief impact officer' but rarely engages with the company's day-to-day operations. One insider remarked, 'We have to fight her agent just to get her to do anything for us. She's been here once in three years.'

What Happens Next?

The company's latest update reveals that Teefey's home loan was used to pay staff, vendors, and freelancers. Employees remain uncertain if further delays will occur, as the company continues to negotiate its next funding round.

As Gomez's public image continues to shine, her business ventures face tough scrutiny. The question lingers: is her billionaire status truly secure, or is it built on a foundation vulnerable to the same setbacks that threaten her start-up?

Gomez's journey from Disney starlet to self-made billionaire is remarkable, built on her cosmetics empire and her dedication to mental health advocacy. Yet, her recent financial challenges at Wondermind serve as a reminder that even the wealthiest can face unforeseen difficulties. Whether her billionaire status remains unquestioned depends on how effectively she and her team can navigate these turbulent waters.

Originally published on IBTimes UK