Victoria Beckham’s clothing brand needs a cash injection to survive after losing £5.9m

Victoria Beckham – Victor Boyko/Getty Images for Dior

Victoria Beckham – Victor Boyko/Getty Images for Dior

Victoria and David Beckham will need to pump more cash into their fashion brand to keep it afloat after losing nearly £6m.

Since its founding in 2008, the Victoria Beckham brand has been in the red for nine years, new accounts have confirmed.

Auditors from the fashion industry – which produces clothes worn by Gwyneth Paltrow and the Duchess of Sussex – have warned for the third year in a row of the future of a brand struggling to make a profit.

BDO said the company faced “significant uncertainty” that cast doubt on its ability to continue as a going concern.

A source close to the company said David and Victoria Beckham, who are shareholders in the brand, were willing to support the company. Investor Neo Investment Partners, a private equity firm, is also seen as supportive.

The directors wrote in Victoria Beckham Holdings’ accounts: “While there is no formal acknowledgment of this continued support, the directors have a reasonable expectation that any support will be provided from shareholders.”

According to accounts, shareholders lent £600,000 to the company last year.

Losses at the former Spice Girls star’s business totaled £5.9m in 2021, compared to £8.6m a year earlier.

The company returned to sales growth during the year, with revenues up 14 per cent to £41m.

The directors said the results showed a significant improvement compared to the previous year, when lockdowns related to the pandemic halted sales at the wholesaler and flagship store in London.

Victoria Beckham CEO Marie Leblanc said the company was boosted by strong sales of beauty products.

He said: “We have entered a new chapter in the business and our energy is focused on accelerating growth and realizing the full potential of the brand.”

Separate documents from DB Ventures, the firm that manages David Beckham’s sponsorship deals, show it paid its top-earning director a total of £2.1m last year. Mr. Beckham is believed to be the highest paid director.

The disclosure follows recent intense scrutiny of Mr Beckham’s role as an ambassador for the World Cup in Qatar. The former Manchester United footballer has been criticized for taking money out of the country given his poor human rights record and stance on LGBTQ+ rights.

The Qatar deal is not included in the latest figures, which cover 2021. They are expected to be included in the 2022 bills.

The Beckhams received £6.3m in 2021 from a holding company that pays dividends to the couple. The prizes total just over £17,000 a day.

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