Selena Gomez’s Startup Faces Payroll Crisis, CEO Borrows Home Loan

Selena Gomez's mental health startup, Wondermind, co-founded with her mother Mandy Teefey, is facing significant financial difficulties, resulting in missed employee paychecks and unpaid vendors and freelancers. In March, the company was unable to pay its approximately 15 full-time staff, prompting Teefey to take out a loan against her home to cover payroll costs. Employees were also informed that their health insurance benefits would be terminated, with the option to continue coverage through COBRA, highlighting the company's financial strain. Sources attribute the financial troubles to challenges following Teefey becoming sole CEO in January 2023, with some employees criticizing her operational experience and decisions to decline lucrative brand deals involving Gomez. Wondermind has stated it has "rectified" the payment issues and expects to settle remaining dues soon, while emphasizing its commitment to mental health work despite the startup's growing pains. The situation has sparked questions about the company's management and Gomez's involvement, as well as the overall stability of the venture.