Gwyneth Paltrow‘s marriage isn’t the only area of her life that’s in shambles. Just days after the CEO of her lifestyle company, GOOP, announced his unexpected departure, RadarOnline.com has uncovered disturbing corporate filings that reveal the company’s dire financial state: For two years running, they racked up serious losses totaling more than $300,000 — thanks in part to an interest-free loan Paltrow took from the company coffers!
According to the most recent corporate documentation filed with the Companies House in the U.K., in 2011, GOOP “incurred a loss of $255,312 (£152,060) and had a net liabilities of $259,969 (£154,834).” And in 2012, they reported “a loss of $39,823 (£23,718) and … net liabilities of $298,512 (£177,788).”
It’s not that GOOP wasn’t making money. In fact, in 2012, they raked in more than $1.5 million (£908,378), thanks in part to $463,486 (£276,040) in product sales, as well as an impressive (£222,243) from Groupon promotions and $373,159 (£535,002) in commissions. All told, the company made $1,893,065 (£1,127,456).
But that same year, GOOP spent $98,150 (£58,456) on Goop.com, $79,961 (£47,623) on the notorious GOOP newsletter, $189,590 (£112,918) on product costs, and a whopping $1,564,995 (£932,096) in administrative expenses,” adding up to the grand profit total of a loss of $39,823 (£23,718).
Chief among those “administrative expenses” were Paltrow and CEO Sebastian Bishop’s “renumeration,” or salaries, for which the company allotted $587,653.25 (£350,000), a sizable increase from the previous year’s figure of $172,585 (£102,788), despite the company’s losses.
The documents also show that in 2012, both Paltrow and Bishop were the recipient of interest-free “loans to directors,” with Paltrow’s listed at a balance of $49,025 (£29,200), of which none was paid back, and Bishop’s at $83,617 (£49,800).
Other expenses in 2012 included $456,007 (£271,584) in other wages, $34,507 (£20,551) on travel, nearly $4,000 (£2,118) on “Entertaining,” and nearly $5,000 (£2,951) on “Staff Entertainment.”
All told, the expenses swallowed up the entire $1.8 million profit for the year and then some, resulting in a loss of $39,823.
Paltrow and Bishop’s report had an excuse, insisting, “As the company started product sales in June 2012, the directors are of the opinion that predicted profits will provide sufficient resources to enable the company to continue trading for the foreseeable future.”
The continued existence of GOOP, it seems, would depend upon it, since the report noted that in addition to the losses, the company owed creditors more than $1.2 million (£722,111), all of which would come due by the end of 2013.
But Paltrow’s company wasn’t all about the profits. Despite their dire finances, GOOP contributed more than $2,000 ( £1,570) to the David Lynch Foundation “to ensure that any child in America who wants to learn and practice the Transcendental Meditation program can do so,” as well as roughly $2,634 (£1,569) to the Edible Schoolyard Foundation “to build and share an edible education curriculum from kindergarten through high school.” They also donated $2,585 (£1,540) to Justin Bieber‘s favorite charity, Pencils of Promise, and $2,589 (£1,542) to the Sandy Hook Foundation.
Corporate filings for 2013 are not yet publicly available, but news of Bishop’s departure from the company has only raised more questions about the endeavor’s solvency. He was a 20% shareholder in the company to Paltrow’s 80%, according to the documents.
Until last year at least, however, she was firmly by his side: She’s named in the GOOP documents as “Gwyneth Martin.”