Victoria Beckham’s fashion brand receives a £23 million cash injection from husband David after filing £10 million in losses
David Beckham has reportedly bailed out his wife’s fashion brand with a £23 million cash injection, according to the Mirror.
The former England footballer, 44, has given Victoria’s company a £4 million loan as well as £6.6 million in cash in order to keep her business afloat.
David’s handout comes after Victoria’s business, which owes another of the Beckham’s companies £12.2 million, filed £10 million in losses before Christmas for the year 2017.
Helping hand: David Beckham has reportedly bailed out his wife’s fashion brand with a £23 million cash injection
Victoria’s designs are regularly worn by a host of stars including Meghan Markle, Kendall Jenner and Lady Gaga, however despite the celebrity influence the company has only broken even once since it began in 2008.
The losses were previously blamed on ‘design, marketing and sales’ spending by a spokesperson for the Victoria Beckham brand.
Victoria saw a boost in sales and cut her staffing by a third in April.
Loan: The former England footballer, 44, has given Victoria’s company a £4 million loan as well as £6.6 million in cash in order to keep her business afloat
In contrast David, 43, who is one of the directors at DB Ventures Ltd, made a profit of £23. 2million the same year and paid himself £18.75 million in dividends.
The ex-Spice Girl’s luxury clothing, glasses and accessories business recently celebrated its 10th anniversary – but losses have increased by £2million in the past 12 months.
The label’s loss, worth around £27,000-a-day, came despite revenues growing 17 per cent to £42.5million in 2017.
The fashion label, which has a flagship store in Mayfair, London and sells items such as coats for up to £2,900 each, posted an £8.4million loss in 2016.
Struggling: David’s handout comes after Victoria’s business, which owes another of the Beckham’s companys £12.2 million, filed £10 million in losses before Christmas for the year 2017
But experts believe Victoria, who is worth an estimated £240million, can expect to turn a profit in the ‘medium term’.
A spokesperson for Victoria has been contacted for comment.
The mother-of-four oversees an empire comprising four clothing lines, more than 400 retail outlets in over 50 countries and offices in London and New York.
At the outset the longtime fashionista, faced a daunting challenge: convincing a competitive and demanding industry that she could make a lasting impression on fickle fashion fans.
Seizing the opportunity to surpass her status as a pop star she has gradually earned widespread recognition, even from fashion luminaries such as Karl Lagerfeld, the creative genius behind Chanel.
Last year sale increased across all areas, especially in her ready-to-wear ‘Victoria Beckham’ line, its sister ready-to-wear ‘Victoria, Victoria Beckham’ line as well as accessories and eyewear, both online and in-store.
Victoria Beckham Ltd said last year the company ‘continued to invest in the business and build its talent base’, maintaining that its shareholders are committed to reducing its loss and expect to break even in the medium term.
Empire: The mother-of-four oversees an empire comprising four clothing lines, more than 400 retail outlets in over 50 countries and offices in London and New York