Victoria Beckham is losing millions of dollars with her fashion and beauty brand, and it’s not new – it’s been going on since she started operations. Recent reports indicate that auditors have long warned of “significant doubts” about the company’s ability to continue operating.
It has been in financial trouble since 2008, the year it was launched
Beckham’s company, according to British press reports, has lost just over $80 million since its launch in 2008. Victoria (48), launched Victoria Beckham Holdings Ltd. That year with a small collection of dresses, but quickly grew into a wide range that now includes handbags, coats, shoes and accessories.
According to The Mirror, the company’s latest accounts show that in 2021 it made a loss of $7.2 million, against $10.4 it made in 2020. If you add up the losses it has had on an annual basis, they add up to just over 80 million.
It is even reported that neither she nor her husband David have made a profit from the company.
Expanding, despite losses
Victoria’s business has expanded into Europe and the Middle East, as well as including new products, such as leather goods and the VB Body range.
“Shareholders continue to support and invest in the company to grow it. The balance sheet is good, there is no bank debt,” according to company spokespeople, something that CEO Marie Leblanc remarked:
“2021 saw the successful repositioning of Victoria Beckham Limited and 2022 is set to be an even stronger year. We have entered a new chapter for the business and our energy is focused on accelerating growth and taking the brand to its full potential.”
Despite the losses, the Beckhams have doubled their profits, according to data listed at Companies House in London, which indicates that in 2020 they earned $14 million in 2020, versus $5.4 million they earned in 2019.