Financial statistics from Victoria Beckham's beauty and fashion label show that it has acquired a tremendous loss worth million as of 2022.
Since the late 1990s, Victoria Beckham and her husband, former Manchester United star David Beckham have remained one of the most famous power couples in Hollywood. Not only have they managed to amass an enviable wealth from various business endeavors, but the Beckhams have also built a worldwide reputation as respectable fashion icons.
Thanks to her popularity, Victoria Beckham’s namesake fashion and beauty brand has successfully come into the spotlight in the fashion world in recent years. With an estimated net worth of £380m, the mum of four is the wealthiest among the five members of Spice Girls.
Victoria's brand is stuck in debt woes
However, according to The Independent, Victoria's luxury business is getting in big trouble as the recorded debt has hit £64 million as of 2022.
According to the company's annual financial statement, the former Spice Girls pop star’s brand has failed to turn a profit since it first filed figures for 2016.
Specifically, £18.4 million and another £7.8 million were added to the company's debts in 2019 and 2020, respectively. At the present, the accumulated debts have reached £64 million, sparking debate about the liquidity of the business. On top of this, Victoria is also incurring another £34 million owed by other companies in which the Beckham family has a stake. A spokesperson for the brand confirmed the figures to The Mirror.
The report announced that ‘total revenues for the Victoria Beckham Holdings group fell 6 percent to £36.1m’. And the reason behind the noticeable decrease is the lasting ramifications of the global pandemic, which has left businesses from all fields struggling with the surge in goods' prices and labor shortages.
Fortunately, the band’s board of management does not bury their head in the sand but has managed to steer the company away from the looming crisis. Information obtained by Mirror referred that the company has ‘rapidly responded to the effects of the pandemic and controlled its cash and expenditure which led to a significant reduction in its operating losses by 57 percent, thanks to cost efficiencies across the business and the recalibration of its business model to make it sustainable for the longer term.'
Victoria still profits from her business
In spite of the financial loss, David and Victoria Beckham’s joint empire reportedly still managed to make a profit of £13.7 million in 2020, seven times more than in the previous year.
Victoria Beckham, with assistance from her husband, David Beckham, launched the fashion brand bearing her own name in 2016. Despite having never been professionally trained to be a designer before, Victoria's insatiable obsession with fashion has resulted in its blossoming over the years. The business started off small with only 10 dresses at the beginning. Despite this humble number, her debut collection was well-received by fashion editors, who praised the 'sophistication' of the cut and fit. The company that was built from scratch has now become an empire with hundreds of stores around the world.
The news of Victoria Beckham's loss-making brand came weeks after an uncomfortable situation within the family, in particular the fallout between Victoria and her daughter-in-law Nicola Peltz.
Rumors about the tension between the pair have circulated for some time after Victoria and the Bates Motel actress ceased all social online interaction. According to several outlets at the time, Victoria and Nicola's feud came after the 28-year-old actress did not use her mother-in-law-designed dress and picked a Valentino Haute Couture gown for her big day instead.
However, in a recent joint-interview with Variety, Nicola and Brooklyn slammed all rumors as non-story, claiming there has been no drama whatsoever.