Victoria Beckham’s fashion empire has now racked up losses totalling more than £50million after a sixth consecutive year of no profits.
Directors warned that the company’s future is in “significant doubt” without any additional money from David or her.
The ex-Spice Girl’s luxury brand made a loss of £8.6million in 2020. That followed a loss of £16.8million in the previous 12 months.
It has never turned a profit since it first filed figures for 2016, with losses now totalling £56.7million.
Victoria Beckham’s husband David, and several other shareholders had to contribute millions of pounds in order to maintain her beauty and fashion business.
Directors admit that the firm will need continued shareholder support to be saved.
They state that there are not any contractual arrangements for such support.
But the directors ‘have the reasonable expectation that any support will be provided from the shareholders’ – believed to refer to the former Posh Spice, 47, and her husband, 46.
Despite the firm’s losses, the couple were still able to pay themselves £40,000 a day in 2019 thanks to the success of the ex-footballer’s business, DB Ventures.
Covid forced the closure of many Victoria Beckham stores in London, Hong Kong and Hong Kong. The company also had difficulty selling its expensive womenswear and accessories at Selfridges, Harvey Nichols, and Bloomingdale’s in the United States.
To help balance the books in the early months of the Covid outbreak, the company’s shareholders, including the celebrity couple themselves, were needed to provide £9.2m in loans, the Guardian reports
In 2019, Victoria Beckham Beauty launched. The brand won 12 awards, and Posh, a popular lipstick, was created. It had £7.3million in sales in its first full year – up from £1.9million in 2019 – but the overall business continues to struggle and was propped up with a £9.2million loan from directors last year.
Beckham was accused of using the furlough plan for 30 out of 120 employees of her fashion label in the midst of the pandemic. In April 2020, she wrote to them stating that they would receive 80 percent pay for at most two months.
But the former pop star, who is worth £335million, reversed the decision two weeks later after uproar, saying her team’s welfare ‘means everything to me’ as she vowed to pay them herself.
The spokesperson for Mrs Beckham stated that the trading results were a ‘good result in a tough year’. “Victoria Beckham Holdings managed to cut its losses in half and increase its online sales for the fashion industry. It also significantly grew its beauty business. Victoria Beckham Beauty did well.
Mrs Beckham has four children with her former Manchester United and England captain husband –Brooklyn, 22, Romeo, 19, Cruz, 16, and Harper, ten.