Billionaire Selena Gomez’s mum took out a loan against her home to pay employees at singer’s company

Selena Gomez’s mum reportedly took out a loan against her home to help pay workers employed at the singer’s start-up company.

Selena Gomez’s mum, Mandy Teefey, reportedly took out a loan against her home to help pay workers employed at the billionaire’s mental health start-up, Wondermind.

Teefey, the company’s CEO, found herself in a crisis when the business allegedly started running out of funds to pay its estimated 15 employees, not including vendors and freelancers, in March, Forbes reported over the weekend.

According to the outlet, workers have been compensated for one out of two missed paychecks, and freelancers and vendors are still waiting to be paid “hundreds of thousands.”

Selena Gomez’s mum, Mandy Teefey, reportedly took out a loan amid a business crisis at the singer’s start-up company, Wondermind. Picture: David Livingston/Getty Images

MORE: Selena Gomez’s secret $1.8bn empire

Around $US60,000 ($94,000) is also owed to a PR firm, anonymous employees alleged.

Wondermind told Forbes that the company has “rectified” the issue, and the rest of the payments will be submitted on Monday.

In March, emails observed by Forbes revealed that Teefy notified Wondermind staff that their health care company was terminating employee health benefits.

Teefey, who is the Wondermind CEO, reportedly took out the loan against her house to pay employees’ wages. Picture: Instagram

The loan comes as a surprise given Gomez is worth is an estimated $2 billion. Picture: Michael Tran/FilmMagic

“We apologise for the email on a wellness day,” the email read, per Forbes. “As you are aware, we have been working tirelessly to secure our next round of funding.”

Employees were also informed in the email that they would have to elect into COBRA coverage, which allows people who lost their jobs or had a reduction in hours to temporarily continue their health plans.

“Like many start-ups, Wondermind has been working through its own set of growing pains,” they said in a statement.

“In the coming days, we will be transitioning into a new chapter for Wondermind, and continuing our important work in mental fitness that helps hundreds of thousands of people.”

Sources told the outlet that the company’s issues allegedly started in January 2023 when Teefey, 49, was appointed as the sole CEO.

Gomez’s cosmetics company Rare Beauty is also worth an estimated $3 billion. Picture: Cindy Ord / Getty Images via AFP

Despite Teefey having reportedly managed her famous daughter’s film and TV career for years, the employees claimed she didn’t have the insight to help the business succeed.

Teefey has also allegedly turned down multimillion-dollar brand deals, including one with Airbnb, if the companies suggested that Gomez, 32, be involved.

Allegations about brand deals, however, were slammed by Wondermind’s chief of staff, Emma Wright, as “insanely, grossly misleading.”

Wright also praised Teefey’s leadership skills, saying she “[leads] with just pure grace.”

“She has been singularly focused on keeping everyone’s livelihoods intact and keeping the company growing,” the businesswoman said.

Reps for Wondermind and Gomez weren’t immediately available to Page Six for comment.

Wondermind was founded in 2021 and raised $US5 million ($7.8 million) in funding the following year, per Forbes.

The actress also currently stars in the award-winning series Only Murders in the Building with Martin Short (centre) and Steve Martin. Picture: Hulu

The Only Murders in the Building star, meanwhile, reached billionaire status in September 2024 with a reported net worth of $US1.3 billion ($2 billion).

Bloomberg credited the bulk of Gomez’s financial success to her Rare Beauty makeup brand, which she established in February 2019 and launched the next year.

While 80 per cent of Gomez’s wealth stems from her cosmetics company, the outlet also recognised that her singing and acting careers, real estate investments and paid partnerships contributed to her wealth.

The former Disney star’s Wondermind company investment was also credited.

This article originally appeared in Page Six and was reproduced with permission