Victoria Beckham’s fashion label continues to be beset by financial troubles, according to new figures revealed this week.
Accounts filed for the luxury label, which sells high-end dresses and acccessories, saw losses almost double to £8.5 million last year – up from £4.3million in 2015.
Meanwhile husband David’s company DB Ventures, which handles the former footballer’s endorsement deals, reported a profit of £24.9million after tax in 2016. This is the equivalent to roughly £2million a month.
Sales at VBL remained stable over the year however losses grew on the back of increased investment in the fashion brand’s design, marketing and sales.
Earlier this year the former pop star’s fashion business was valued at £100million following a major cash injection from former Goldman Sachs banker David Belhassen, the man behind French-inspired bakery chain Paul.
Mr Belhassen runs Neo Investment Partners which has bought a minority stake in the firm for £30million.
Accounts filed for the luxury label, which sells high-end dresses and acccessories, saw losses almost double to £8.5 million
News of her financial woes comes 12 months after it was revealed the star had been formally warned the business – which employs 180 staff – could be closed down after failing to file its accounts on time.
Robert Dodds, a director at Victoria Beckham Limited, identified the company’s partnership with Target and its Estee Lauder collaboration as two areas likely to bring the company more growth in 2017.
Writing in the financial statement, he wrote: ‘The further announcement of a global license agreement with Reebok will further enhance the future profitability of the business.’
However it was a very different story for DB Ventures. Sales rose from £10.2million in 2015 to £11.2million last year due to income from partnerships with drinks company Diageo, which makes Haig Club whisky, and insurance group AIA Vitality, among others. He also has endorsement deals with Kent and Curwen menswear and Adidas.
David also boasts over 40 million followers on Instagram – more than double that of the mother of his four children – from which he can gain considerable revenue as a social media ‘influencer’.
Fortunately for Victoria, she is not dependent on her fashion business to maintain her lifestyle.
She controls a large stake in the main holding company for her and David’s business ventures, Beckham Brand Holdings (BBH).
Ownership of the firm is split equally between Victoria, David and Fuller’s company XIX Management. BBH contains Victoria’s fashion business along with another branch of the couple’s complex financial empire, DB Ventures Ltd.