Victoria Beckham’s fashion company has reportedly recorded losses of £66.3million.
The 48-year-old fashion designer launched her fashion label in 2008 with a small collection of dresses. It swiftly grew to an extensive range that now includes handbags, coats, shoes, and accessories.
According to The Mirror, the latest accounts for Victoria Beckham Holdings Ltd show it made losses of £5,887,036 in 2021, down from £8,581,944 in 2020.
The study says: ‘The loss for the year, after taxation and minority interests, amounted to £5,887,036 (2020 – loss of £8,581,944.
‘During the 2021 financial year the ultimate shareholders provided additional loans of £0.6m to the group.’
The luxury fashion business has expanded to Europe and the Middle East, with the annual accounts saying the brand was also expanding into new products, with the launch of leather goods and the VB Body range.
Despite the big losses, the Beckham’s global empire has reportedly doubled its profits. Annual accounts filed with Companies House in London showed the pair made £11.6m in the year ending December 2020 despite the pandemic – compared to £4.5m in 2019.
In accounts submitted in 2021, auditors warned of ‘significant doubt’ about Victoria’s fashion company’s ability to continue operating when it was reported that the company had racked up debts of more than £46 million since it launched.
Friends of the star said at the time that she is determined to continue with her company even though her detractors have dismissed it as a vanity project.
One said: ‘This is what gives Victoria her identity, she loves it and despite its obvious obstacles, she is a grafter and hugely passionate about it.’
In February 2021, it emerged that Mrs Beckham’s beauty range she set up in 2019 had suffered a loss of £4.7 million.
A spokeswoman for Mrs. Beckham said: ‘Whilst 2019 was a challenging year, the business halved its losses – a significant step in the road to profitability. The launch of the hugely successful beauty line in the same year helped drive overall revenues up 7% on 2018 and both businesses are focussed on profitable growth.
‘The showcase of the recent AW21 fashion collection has been well-received by fashion critics and the beauty business has seen multiple sell-out products in recent months.’