Victoria Beckham’s high-end fashion company ‘owes £53.9m’ – after auditors previously warned they had ‘significant doubt’ about the company’s ability to continue as a going concern
Victoria Beckham’s high fashion company is reportedly £53.9 million in debt.
The 48-year-old fashion designer started her fashion label in 2008 with a small clothing collection. It has now quickly grown into a wider range that includes handbags, coats, shoes and accessories.
But now the brand faces an uncertain future as a spokeswoman for Victoria has put her fashion label on the mirror.
Fiance: Victoria Beckham’s high fashion company is reportedly £53.9 million in debt
The report says: ‘Victoria Beckham Holdings Group’s total revenue fell 6% to £36.1m (2019 – £38.3m) due to the impact of the global pandemic.
“This team responded quickly to the damage caused by the epidemic and managed the money and expenses, resulting in a significant reduction in operating losses of 57%, which is due to the competencies in the business and the restructuring of the business model, making it sustainable in the long term.
‘Victoria Beckham Beauty continues to expand its portfolio with a number of successful product launches this year, with pure luxury beauty and skincare in the category.’
Despite heavy losses, Beckham’s global empire has reportedly doubled its profits. Annual accounts filed at Companies House in London show that despite the pandemic, the pair made £11.6m at the end of December 2020 – compared to £4.5m in 2019.
Brand: The 48-year-old fashion designer started her fashion label in 2008 with a small clothing collection.
In the year In accounts due in 2021, auditors have warned that there is ‘significant doubt’ about the company’s ability to continue as a going concern, as it is revealed that the company has made more than £46m since it began operations.
Friends of the star say she is determined to continue with the company, despite her detractors dismissing it as a vanity project.
One said: ‘That’s what gives Victoria who she is, she loves him and despite her obvious obstacles, she’s caring and has a lot of love for him.’
Power couple:m Beckham’s global empire doubles profits despite huge losses – £11.6 million in 2020
In the year
A spokesman for Mrs Beckham said: “While 2019 has been a challenging year, the business has halved its losses – a major step towards profitability. The launch of a wildly successful beauty line that same year helped boost total revenues by 7 percent in 2018, and both businesses are focused on profitable growth.
‘The recent AW21 fashion collection show has been well received by fashion critics and the beauty business has seen a number of sales in recent months.’
MOTIVATION: The star’s friends say she is determined to continue with the company, despite her detractors dismissing it as a vanity project.