Victoria Beckham’s fashion and beauty empire is “recording losses of £66m” – after auditors earlier warned of “significant doubt” about the business’s ability to continue as a going concern.
Victoria Beckham’s high-end fashion company is reportedly £66.3m in debt.
The 48-year-old fashion designer launched her fashion label in 2008 with a small collection of dresses. It quickly grew into an extensive range that now includes handbags, coats, shoes and accessories.
According to The Mirror, Victoria Beckham Holdings Ltd’s latest accounts show it made losses of £5,887,036 in 2021, down from £8,581,944 in 2020.
Finances: Victoria Beckham’s high-end fashion company is said to be £66.3m in debt
It means the firm’s total losses now stand at £66.3m and the firm’s directors – including Victoria and her husband David – have not received a dividend.
The study says: “Loss for the year after tax and minority interests amounted to £5,887,036 (2020 – loss of £8,581,944
“During the 2021 financial year, the ultimate shareholders have made further loans of £0.6m to the group.”
The luxury fashion business has expanded into Europe and the Middle East, with the annual accounts saying the brand is also expanding into new products, with the launch of leather goods and the VB Body range.
MailOnline has contacted a representative for Victoria for comment.
Brand: According to The Mirror, Victoria Beckham Holdings Ltd’s latest accounts show it made losses of £5,887,036 in 2021, down from £8,581,944 in 2020.
Business: The 48-year-old fashion designer launched her fashion label in 2008 with a small collection of dresses. It quickly grew into an extensive range that now includes handbags, coats, shoes and accessories
Despite heavy losses, the Beckhams’ global empire is said to have doubled its profits. Annual accounts filed at Companies House in London showed the pair made £11.6m in the year to December 2020 despite the pandemic – compared to £4.5m in 2019.
In accounts presented in 2021, auditors warned of “significant doubt” about fashion company Victoria’s ability to continue as a going concern after it was reported that the company had amassed more than £46m in debt since it launched.
Friends of the star said at the time that she was determined to continue her company, although her critics dismissed it as vanity.
One said: ‘This gives Victoria her identity, she loves it and despite the obvious obstacles, she’s a jackass and she’s hugely passionate about it.’
Power couple: Despite heavy losses, Beckham’s global empire reportedly doubled profits – £11.6m in 2020
In February 2021, it was revealed that Mrs Beckham’s beauty salon, which she set up in 2019, had made a loss of £4.7 million.
A spokeswoman for Mrs Beckham said: “While 2019 was a challenging year, the business has halved its losses – a significant step towards profitability. The launch of a hugely successful beauty line in the same year helped boost total sales by 7% over 2018, and both companies are targeting profitable growth.
“The show of the recent AW21 fashion collection was well received by fashion critics and the beauty business has seen several sell-outs in recent months.”
Motivated: The star’s friends say she is determined to continue her company despite being dismissed as vanity by her critics