Victoria Beckham’s fashion business remained loss-making in 2020 with sales falling 6% to £36million compared with 2019.
Clothing sales also slumped when Covid restrictions forced stores to close, according to accounts filed for the former Spice Girls star.
The company’s shareholders forked out £9.2m in loans during the 12 months to December 31 last year and provided a further £600,000 in 2021.
The lockdown-related closure of physical shops combined with a sharp fall in the number of international visitors to Britain was damaging for the business.
In July 2020 Beckham announced she was cutting about a fifth of the staff at her fashion label, and was slashing by one-third the number of garments produced for each collection.
Despite a staggering net worth of £335m, she used public funds to furlough 30 staff at the start of the first Covid lockdown
She faced fierce criticism for this and the decision was reversed two weeks later.
The firm’s auditors have expressed their uncertainty over its ability to continue as a going concern. However, the group’s directors said they expected the Beckhams and other shareholders to carry on funding the company.
The business has never turned a profit.
The Victoria Beckham company has stores in London and Hong Kong and concessions in Harvey Nichols, Selfridges and US department store Bloomingdale’s.
A spokesman said the trading figures were ‘a good result in a difficult year’. They added:
“Victoria Beckham Holdings has managed to halve its losses, grow its online sales in the fashion business and significantly grow its beauty business. Victoria Beckham Beauty performed strongly.”
Meanwhile, Victoria and David’s son Romeo has reportedly landed a £1.2million contract to become the new face of Puma.
Romeo, 19, who plays for playing for Fort Lauderdale FC, the reserve team of his father’s club Inter Miami, has also been modelling for a few years.
Big name brands are said to be lining up to have Romeo as the face of their products.
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Source: Celebrities - dailystar.co.uk
