Victoria Beckham’s luxury fashion brand, known for selling £500 jumpers and £400 jeans, has racked up a whopping £53.9 million in debt.
The past three years haven’t been the best for the ex-Spice Girl’s fashion firm, accumulating £15.6million in debts in 2019 and losing £6.6million in 2020 from her fashion label and new make-up venture.
A spokesperson for Ms Beckham’s brands confirmed the fashion label’s figures were accurate and a report revealed the debts were a result of the global pandemic.
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“Total revenues for the Victoria Beckham Holdings group fell 6% to £36.1m (2019 – £38.3m) due to the effects of the global pandemic,” the report explained.
The high end clothing brand reportedly “controlled its cash and expenditure” in response to the losses and recalibrated it’s business model to make it “sustainable for the longer term.”
Within the £53.9m debt, £29 million is owed to the Beckham’s other business ventures.
Aside from the losses, Victoria plans on steaming forward with her new makeup and skincare line.
Her spokesperson revealed to the Mirror: “Victoria Beckham Beauty continues to expand its portfolio with a number of successful product launches in this year with best in class in clean luxury beauty and skincare.”
Despite the losses, David and Victoria Beckham’s global empire raked in £11.6m in 2020 during the pandemic.
The figure shows a their profits had doubled in comparison to the £4.5 million they earned in 2019, according to the annual accounts filed with Companies House in London this week.
The majority of their earning are said to have come from David’s partnerships with firms like adidas, watch maker Tudor and Haig whisky.
The pair took out dividends of £15 million in total and paid £2.5 million in tax.
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Source: Celebrities - dailystar.co.uk
