Lady in the red... Victoria’s fashion firm £36m in debt
VICTORIA Beckham’s fashion business has plunged almost £36million into the red after running up losses of £12.5million last year, figures reveal.
The former Spice Girl’s firm Victoria Beckham Holdings Limited has just filed accounts for 2018 that show she failed to turn round the troubled empire, which has made losses every year since 2013.
Revenue went down from £42.5million in 2017 to £35.8million last year as the business was restructured.
Values
Overall losses for the company have risen from £23.5million to £36million.
Documents also reveal the company breached the terms of a £10million HSBC loan “several times” but that the bank has “remained supportive by allowing time to explore the options available to the group and shareholders”.
The report also insisted that changes were being made to turn the company round.
The accounts said: “Whilst revenues and profits were down in 2018, the business performed in line with shareholders’ expectations by cutting costs, focusing on its digital channels and refining its product to more closely reflect Victoria Beckham’s aesthetics and values.”
It also said that the company had £30million in new investment which had gone into the appointment of a “world class leadership team”.
The report said the investment was targeted at digital marketing and other strategies to allow greater distribution.
It said the strategy was paying off and sales were increasing in 2019 in “certain segments” as well as there being a reduction in losses.
Victoria first turned from singing to modelling in 2000 and launched her own fashion label eight years later.
She has combined her business venture with raising the four children she has with former England and Manchester United hero David, 44.
The Beckhams have been married for 20 years and regularly feature in lists of Britain’s wealthiest people.