It is reported that Victoria Beckham’s high-end fashion label is in £53.9 million worth of debt.
The line, first launched in 2008 by the former Spice Girl, is known for its high-end and expensive pieces, with £500 jumpers and £400 jeans. The garments can be bought directly from the company, and are also outsourced to the likes of Selfridges. Stemming from just a single line of dresses in 2008, the company has built its range up, with Victoria Beckham also running a makeup line alongside this.
The pandemic has been pinned as the main cause for the company’s financial struggles. Of the £53.9 million debt, £29 million is owed to the Beckhams’ other businesses. Despite their struggles in the fashion world, the Beckhams’ other businesses have coped in today’s trying times, apparently doubling in profits, and earning £11.6 million, according to Companies House.
With most of these profits being tied to David Beckham’s brand deals, an isolated look at the Victoria Beckham Holdings group provides evidence that their revenues have fallen by 6%, with her makeup firm also losing £6.6 million in 2020.
With UK Covid restrictions in 2020 leading to the closure of shops, this led to a fall in revenue for the star, who announced in July 2020 that she was cutting a fifth of staff at her fashion label and reducing the number of garments produced for each collection by one third. By December 2021, the line had significantly reduced the prices of its dresses, and made them more simple to increase their appeal to a wider audience, meaning that financial struggles have been experienced by the brand before.
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