Victoria Beckham’s fashion label is haemorrhaging £4,000 A DAY
Victoria Beckham's luxury label has made a loss in four of the eight years it filed accounts
VICTORIA Beckham’s fashion label is losing on average around £4,000 a day, it’s been revealed.
Analysis of the eight sets of accounts published by her label show it has made losses of almost £12million.
The former Spice Girl will debut her fashion collection for the first time at London Fashion Week today as she celebrates a decade in the business.
Founded in 2008, her company has grown from a small collection of dresses into a full line of ready-to-wear.
The company opened its first store in London in 2014, followed by one in Hong Kong in 2016. They sell through 400 stockists in more than 50 countries and now employ 180 people.
However the company's accounts reveal it's not the success story it might appear.
The label’s debt jumped by nearly £10m during 2016, according to the most recent financial statements.
Bank loans to the business doubled to £12m during the same year, the Sunday Times reported.
Beckham has managed to generate sales of almost £169m over the eight-year period — but her luxury label has made a loss in four of the eight years it filed accounts.
In 2016 she made losses of £8.5million - up from £4.3million in 2015.
Directors put the negative figures down to heavy investment in “design, production and marketing” in a “difficult global trading environment”.
Earlier this year Beckham, who pays herself £700,000 a year, was forced to make a third of her staff redundant.
In contrast with his wife’s business, David’s profits have soared.
He has made £80m in profits over the past three years, putting their joint company Beckham Brand Holdings more than comfortably in the black.
It’s hoped Victoria Beckham Limited will break even by 2020.
Last November the company received a £30m investment from Neo Investment Partners, a private equity firm run by David Belhassen.
Sources reportedly told her not to take part in the lucrative Spice Girls reunion tour as it would “cheapen” her luxury fashion brand.
The private equity group helped expand French bakery chain Paul in the UK. The transaction was said to value the company at around £100m.
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Beckham also has an athletic line with sports brand Reebok.
Earlier this year, the 44-year-old appointed the Italian fashion industry veteran Ralph Toledano to chair her business.
Sun Online have contacted Victoria Beckham Limited for a comment on her latest finances.
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