Victoria Beckham’s fashion and beauty empire ‘posts losses of £66million’ – after accountants previously warned of ‘significant doubts’ about the company’s ability to continue operations
Victoria Beckham’s high-end fashion company is reportedly £66.3million in debt.
The 48-year-old fashion designer started her fashion label in 2008 with a small clothing collection. It quickly grew into an extensive range that today includes handbags, coats, shoes and accessories.
According to The Mirror, the latest accounts for Victoria Beckham Holdings Ltd show it made losses of £5,887,036 in 2021, up from £8,581,944 in 2020.
Finances: Victoria Beckham’s high-end fashion company is reportedly £66.3million in debt
This means the company’s total losses are now £66.3million and the company’s directors – including Victoria and her husband David – have received no dividends.
The study states: “The annual loss after tax and minority interests was £5,887,036 (2020 – loss of £8,581,944
“During the 2021 financial year, the group’s final shareholders provided an additional £0.6m in loans.”
The luxury fashion business has expanded into Europe and the Middle East, with the financial statements saying the brand is also expanding into new products with the launch of leather goods and the VB Body range.
Web has reached out to Victoria’s representatives for comment.
Brand: According to The Mirror, the latest accounts for Victoria Beckham Holdings Ltd show it made losses of £5,887,036 in 2021 compared to £8,581,944 in 2020
Store: The 48-year-old fashion designer started her fashion label in 2008 with a small clothing collection. It quickly grew into an extensive range that today includes handbags, coats, shoes and accessories
Despite the big losses, Beckham’s global empire has reportedly doubled its profits. Financial statements filed with Companies House in London showed the couple earned £11.6million in the year ended December 2020, despite the pandemic – compared to £4.5million in 2019.
In the accounts filed in 2021, auditors warned of “significant doubts” about the Victoria’s fashion company’s ability to continue operations when it was reported that the company had accumulated more than £46million in debt since its inception.
Friends of the star said at the time that she was determined to continue with her venture, despite her critics dismissing it as a vanity project.
One said: “It gives Victoria her identity, she loves it and despite her obvious obstacles she is a countess and a great passion for it.”
Power couple: Despite the huge losses, Beckham’s global empire has reportedly doubled their profits – £11.6million in 2020
In February 2021, it emerged that Ms Beckham’s beauty range, which she founded in 2019, had suffered a £4.7million loss.
A spokeswoman for Ms Beckham said: “Although 2019 was a challenging year, the company cut its losses in half – a significant step on the road to profitability. The launch of the hugely successful beauty line that same year helped boost overall sales by 7% over 2018, and both companies are focused on profitable growth.
“The presentation of the current AW21 fashion collection was well received by fashion critics and the beauty industry has seen several sold-out products in recent months.”
Motivated: Friends of the star say she is determined to continue with her venture, despite her critics dismissing it as a vanity project