0 likes42 views

Victoria Beckham injects £6.9m into fashion empire after financial loss

August 31, 2024

Victoria Beckham has injected millions into her fashion and beauty empire following a £3m loss in the 2024 financial year, according to recently filed accounts.

The former Spice Girl, along with her husband David Beckham and private equity firm Neo Investment Partners, provided a £6.9m cash injection to bolster her businesses.

Of this sum, £3m was allocated to her fashion label to meet working capital needs as it introduced new ranges, including belts and bags. An additional £3.9m was invested in Victoria Beckham Beauty to boost inventory levels.

Victoria Beckham Holdings, the umbrella company for her luxury fashion and skincare brands, reported a loss of £3m, a slight improvement from a £3.3m loss the previous year. Despite continued financial challenges, sales have surged, with revenues up 52% to £89m last year, compared to £59m in 2022, £41m in 2021, and £36m in 2020. The company’s performance has been lifted by successful new product lines, including belts, which now account for over 20% of online sales, and a perfume collection in the beauty division.

David Belhassen, a director of the company and founder of Neo Investment Partners, expressed optimism about the business’s future, stating that efforts are underway to ensure the empire is built “on ever stronger foundations” with a continued focus on developing high-standard products.

Although the wider business remains unprofitable, Victoria Beckham revealed earlier this year that her fashion label has turned profitable, saying, “We can really start building the house that I always dreamed of.” The brand, which started in 2008 with a small collection of dresses, has grown significantly and won the best brand award at the British Fashion Awards in 2011. Mrs Beckham expanded into beauty in 2019, adding to her portfolio.

Her latest collection showcased at Paris Fashion Week received praise for its sophistication, with Bethan Holt, The Telegraph’s fashion director, describing it as “slick, grown-up and polished.” Reflecting on her journey, Mrs Beckham stated, “I really love creating what I believe women want to wear. I love the fact that I can create what I’m ultimately desiring.”

This latest cash infusion is not the first time the Beckhams have stepped in to support their businesses. Last year, auditors highlighted the need for continued shareholder support to aid the company’s turnaround strategy. With David Beckham’s business ventures thriving through lucrative deals with Netflix and the Qatar World Cup, the Beckhams, alongside Neo, are understood to remain committed to supporting Victoria’s fashion and beauty brands through their financial challenges.