ESC

Gwyneth Paltrow Is Using GOOP as Her Personal Piggy Bank

Sebastian Bishop, CEO of Gwyneth Paltrow’s lifestyle brand GOOP, recently announced his departure from the company. Days after the announcement, Radar uncovered corporate filings showing that Gwyneth Paltrow and Sebastian Bishop were using the company as their own personal piggy bank. For two years, the company had incurred losses of more than $300,000. Mostly from an interest-free loan Paltrow took from the company.

What’s more surprising is that the company managed to bring in $1.5 million proving that if a celebrity tells people they need $450,000 worth of wardrobe essentials, which include a $425 plain white tank top, then people will buy it. Why not? It’s essential!

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).

What are these “administrative expenses”? Gwyneth and Sebastian’s salaries which, despite their losses the previous year, actually increased from $172,585 to $587,653.25.

Not only are they being paid an obscene amount of money for doing basically nothing but writing about whatever Gwyneth thinks up while taking a poop but they each took out interest-free loans. Paltrow has one for $49,025 while Bishop has one for $83,617. They also had an excuse for why they’re taking the lion’s share of profits and then some.

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.

BI notes that in their defense, they did donate to charities. $2,000 to the David Lynch foundation, $2,634 to the Edible Schoolyard Foundation, $2,585 to Justin Bieber’s favorite charity, Pencils of Promise and $2,589 to the Sandy Hook foundation.

So they made $1.5 million in salary but donated around $9,500 to charities. They totally redeemed themselves.

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