Selena Gomez's mom takes a loan to save the singer's start up after failling to pay employees

Mandy Teefey, the CEO of Wondermind, Selena Gomez’s mental health startup, recently took an extraordinary step to keep the company afloat—she took out a loan against her home to pay workers, who had been waiting months for their salaries, amid financial struggles.

Wondermind, which was founded in 2021 to promote mental “fitness,” has been grappling with cash flow problems, leaving some employees and vendors unpaid for several weeks.

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What happened to Wondermind?

Teefey's decision was not out of nowhere. On March, employees were told that there was going to be a delay in their salaries, as the start-up had been facing problems while securing funding. Getting a loan for her house was a decision she ultimately made after workers missed 2 paychecks. Freelancers and vendors are also waiting for compensation, while reports of Wondermind owing hundreds of thousands of dollars surface.

Wondermind’s chief of staff, Emma Wright, despite all of this, defended Teefey's leadership and called her a dedicated leader focused on growing the company.

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What is the current situation in Wondermind?

According to some employees, the problems started when Teefey was appointed the sole CEO of Wondermind. While she has managed, her daughter's Selena Gomez career since the beginning, many claim she doesn't have the business insight to help Wondermind succeed.

While the loan has covered one of the missed paychecks for their employees, Wondermind has told Forbes the issue has been rectified and the rest of the money will be submitted on Monday.