Victoria Beckham is ‘loaned £6.4 million lifeline to save her ailing fashion empire after racking up £42 million worth of losses over four years’
- Victoria has reportedly been loaned a £6.4 million lifeline to save her ailing fashion empire in new records published this week
- The Spice Girl turned fashion designer’s company has allegedly racked up £42 million worth of losses over the past four years
- Victoria, 46, will reportedly be able to keep control of her ‘flagship Victoria Beckham Ltd’ after being ‘backed by a private investment agreement’
- In November 2019, it was reported that Victoria’s fashion business plunged almost £36 million into the red after making losses of £12.5 million in 2018
- In April, Victoria was met with public backlash following her decision to furlough her staff, which she has since reversed
Victoria Beckham has reportedly been loaned a £6.4 million lifeline to save her ailing fashion empire in new records published this week.
The Spice Girl turned fashion designer’s company has allegedly racked up £42 million worth of losses over the past four years.
Victoria, 46, will reportedly be able to keep control of her ‘flagship Victoria Beckham Ltd’ after being ‘backed by a private investment agreement’.
Reports: Victoria Beckham has reportedly been loaned a £6.4 million lifeline to save her ailing fashion empire in new records published this week
The Sun reports that London Investments Sarl will have its cash converted into shares if they are not repaid.
The Luxembourg-based company is said to have put £30 million into the fashion empire in 2017 for a 28 per cent share.
The newspaper also claims that David and Victoria control ‘48.4 per cent of shares’ and pal Simon Fuller has 23.6 per cent.
A ‘financial expert’ told the publication: ‘Posh wouldn’t want to relinquish any more control in a business which is formed in her name. Yet desperate times require desperate measures.
Ouch: The Spice Girl turned fashion designer’s company has allegedly racked up £42 million worth of losses over the past four years (flagship store pictured in London)
‘Control’: Victoria, 46, will reportedly be able to keep control of her ‘flagship Victoria Beckham Ltd’ after being ‘backed by a private investment agreement’ (pictured at her LFW show in February)
‘The move will secure a much-needed cash injection — and after racking up record losses last year of some £12million they can’t afford not to do something radical.’
MailOnline has contacted both Victoria and David’s representatives for comment.
In November 2019, it was reported that Victoria’s fashion business plunged almost £36 million into the red after making losses of £12.5 million in 2018.
Her company Victoria Beckham Holdings Limited filed accounts for 2018 which showed she had failed to turn round the troubled fashion empire. It has now made losses for every year since 2013.
The news came as profits from her husband David’s company DB Ventures halved over the span of a year, from £23.2 million in 2017 to £11.5 million in 2018.
Losses: Graph shows how losses have mounted up for Victoria Beckham Ltd since it launched in 2013, the 2018 figures show that the company lost £42.3 million
David, 45, is thought to have lent wife Victoria some £600,000 for her Victoria Beckham Ltd business, after he bailed out his wife’s company with a £23 million cash injection in January 2019.
But it’s not all woe: the couple were ranked 372 on last year’s Sunday Times Rich List, with a combined wealth of some £355 million and were named among Britain’s 50 biggest taxpayers in The Sunday Times Tax List.
David has endorsement arrangements with brands including Pepsi, Samsung, H&M, Haig whisky and Adidas which give him a cut of rising sales.
The Beckhams’ property portfolio includes a £31.5 million mansion in West London and a lavish £6 million country abode in the Cotswolds, where they are currently self-isolating at during the COVID-19 lockdown.
Revenue for Victoria’s holding company went down from £42.5 million in 2017 to £35.8 million last year as the company was restructured.
Overall losses for the company have risen from £23.5 million to £36 million. The Sun claims they are now at £42 million.
Business: In November 2019, it was reported that Victoria’s fashion business plunged almost £36 million into the red after making losses of £12.5 million in 2018 (pictured in February)
Documents also revealed that the company breached the terms of a £10 million HSBC bank loan ‘several times’ but for the time being ‘HSBC has remained supportive by allowing time to explore the options available to the group and shareholders’.
Despite the devastating figures, the report insisted that changes were being made to turn the company round and to make it more in line with Victoria Beckham’s ‘aesthetics and values’.
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 products to more closely reflect Victoria Beckham’s aesthetics and values.’
It also said that the company had £30 million in new investments which had been ploughed into the appointment of a ‘world class leadership team’.
The documents said the investment was targeted at digital marketing and other strategies to enable the company to distribute to over 120 companies.
It said the strategy was paying off and sales were increasing in 2019 in ‘certain segments’ as well as a reduction in losses.
Impressive: The Beckhams’ property portfolio includes a £31.5 million mansion in West London and a lavish £6 million country abode in the Cotswolds, where they are currently self-isolating at (Cotswolds property is pictured in 2017)
Victoria recently launched a new make-up range, it includes a £180 Cell Rejuvenating Power Serum and £92 Cell Rejuvenating Priming Moisturiser.
The Sun claimed that David paid £11.1 million from his profits in the family company Beckham Brand Holdings which he and Victoria co-own.
It was also reported that David’s lendings to Victoria’s fashion company now total £16 million.
MailOnline contacted representatives for David and Victoria Beckham for comment at the time.
In 2016, the former England captain reportedly bailed out Victoria’s fashion empire with £5.2 million after her designer brand lost £3.8 million in a year.
Victoria’s losses were previously blamed on ‘design, marketing and sales’ spending by a spokesperson for the Victoria Beckham brand.
Victoria saw a boost in sales and cut her staffing by a third in April.
Help: It has been claimed that David’s lendings to Victoria’s fashion company now total £16 million
In contrast David, who is one of the directors at DB Ventures Ltd, made a profit of £23.2 million the same year and paid himself £18.75 million in dividends.
The fashion label has a flagship store in Mayfair, London and sells items such as coats for up to £2,900 each.
In 2016, the firm was £8.4 million in the red and £4.7 million the year before that.
In April, Victoria was met with public backlash following her decision to furlough her staff, which she has since reversed.
Pricey! Victoria recently launched a new make-up range, it includes a £180 Cell Rejuvenating Power Serum and £92 Cell Rejuvenating Priming Moisturiser
The star, whose family is worth £335million, had planned to use the Government’s Covid-19 scheme to pay 80 per cent of the wages of some of her staff.
The fashion brand, which employs 120 people, sent letters to 30 members of staff warning them that they were going to be furloughed under the Government’s scheme for two months.
She told The Guardian: ‘We will not now be drawing on the government furlough scheme. At the beginning of the lockdown the shareholders agreed with senior management to furlough a small proportion of staff.
‘At that point we didn’t know how long the lockdown might last or its likely impact on the business. The welfare of my team and our business means everything to me.’
Backlash: In April, Victoria was met with public backlash following her decision to furlough her staff, which she has since reversed (her flagship store pictured in 2014)
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