Victoria Beckham’s high-end fashion business ‘has debts of £53.9million’ – after auditors previously warned of ‘significant doubt’ over the company’s ability to continue operating
Victoria Beckham’s high-end fashion company is said to have debts of £53.9million.
The 48-year-old fashion designer launched her fashion label in 2008 with a small collection of dresses. It quickly grew into an extensive line that now includes handbags, coats, shoes and accessories.
But now the brand faces an uncertain future as a spokeswoman for Victoria has confirmed her fashion label’s figures with The Mirror.
Fiancé: Victoria Beckham’s high-end fashion company is said to be in debt for £53.9m
A report said: ‘Total group revenue for Victoria Beckham Holdings fell 6% to £36.1m (2019 – £38.3m) due to the effects of the global pandemic.
“This group reacted quickly to the effects of the pandemic and controlled its cash and expenses, which led to a significant reduction in its operating losses of 57%, thanks to cost savings throughout the company. company and recalibrating its business model to make it sustainable for the longer term.
“Victoria Beckham Beauty continues to expand its portfolio with a number of successful product launches this year featuring best-in-class clean luxury beauty and skincare.”
Despite the big losses, Beckham’s global empire reportedly doubled its profits. Annual accounts filed with Companies House in London showed the pair earned £11.6m in the year to December 2020 despite the pandemic – up from £4.5m in 2019.
Brand: The 48-year-old fashion designer launched her fashion label in 2008 with a small collection of dresses
In accounts submitted in 2021, auditors warned of ‘significant doubt’ over the Victoria fashion company’s ability to continue operating when it was reported the company had racked up debt of more than £46m since launch.
The star’s friends said at the time that she was determined to continue with her business even though her critics dismissed it as a vanity project.
One said: “It’s what gives Victoria her identity, she loves it and despite her obvious obstacles she is a grafter and extremely passionate about it.”
Power couple: Despite big losses, Beckham’s global empire is said to have doubled its profits – hitting £11.6million in 2020
In February 2021, it emerged that Ms Beckham’s beauty range which she created in 2019 had suffered a loss of £4.7million.
A spokeswoman for Ms Beckham said: “While 2019 was a difficult year, the business cut its losses in half – a significant step on the road to profitability. The launch of the beauty line in resounding success in the same year increased overall revenue by 7% compared to 2018 and both businesses are focused on profitable growth.
“The showcase of the recent AW21 fashion collection was well received by fashion critics and the beauty industry has seen several products sold out in recent months.”
Motivated: The star’s friends say she’s determined to keep going with her business even though critics have dismissed it as a vanity project