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Vertu manufacturing arm faces liquidation after rescue bid fails

Vertu manufacturing arm faces liquidation after rescue bid fails

Vertu is going to liquidate after last-minute attempts to save the struggling luxury phone maker failed.

"We plan to launch these new services from September 2017 and update this page closer to the launch with further information", the site reads.

"We have taken the hard decision to suspend our current Vertu services and focus on developing a completely new, next generation suite of services, exclusively for our customers".

As reported by the BBC, Vertu's problems lay within "an accounting deficit of £128 million", which has not been resolved despite being sold by the company's owner, a Chinese holding company, to Turkish businessman Murat Hakan Uzan. There has been no clue which services Vertu is pursuing but from the statement, it is most likely getting away from hardware products.

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Vertu was known for its high-end, jewel-encrusted handsets, but recently faced financial difficulties.

Vertu was founded by Nokia in 1998, but it was sold in 2012, and the following year Vertu switched from using Nokia's Symbian operating system on its devices to Google's Android. Despite efforts to save the company, financial debacles have brought Vertu six feet under. This has resulted in the shutting down of the United Kingdom manufacturing wing, leading to laying off of around 200 employees.

Ian Fogg, an analyst at IHS Technology, told BBC that, "It is very unusual, they hand make the phone at incredibly low volumes and they were incredibly high-priced". Vertu, with its precious metals and fine, hand-cut leather was supposed to maintain its luxury lead for decades.

Vertu phones carried hefty price tags - its Signature range started at £11,100 ($14,300), and one model featuring 18-carat red gold costed £39,100 ($50,000).