Victoria Beckham’s fashion and beauty business suffered another year of losses after it fell £6.8m into the red in 2020 while turnover dropped 6% to £36.1m, accounts show
- Victoria Beckham Holdings owns fashion line and majority stake in beauty range
- The former Spice girl and husband David had to pump in cash to keep firm afloat
- Mrs Beckham U-turned last year after furloughing 30 members of her staff
Victoria Beckham, husband David and a number of other shareholders have had to pump in millions of pounds to keep her fashion and beauty business afloat.
The firm, Victoria Beckham Holdings (VBH), experienced a fall in sales to £36million in 2020, down 6% on the previous year, according to company accounts.
VBH owns the former Spice Girl’s fashion chain plus the majority stake in her beauty range, which launched two years ago.
Fewer sales as a result of the pandemic resulted in a pre-tax loss of £6.8m, though that was actually less than half the amount lost in 2019.
To help balance the books in the early months of the Covid outbreak, the company’s shareholders, including the celebrity couple themselves, were needed to provide £9.2m in loans, the Guardian reports.
A bank loan also had to be repaid to HSBC, amid struggles for the company in dealing with shops shutting and fewer international visitors to the UK.
Victoria Beckham, husband David and a number of other shareholders have had to pump in millions of pounds to keep her fashion and beauty business afloat
To help balance the books in the early months of the Covid outbreak, the company’s shareholders, including the celebrity couple themselves, were needed to provide £9.2m in loans, the Guardian reports
Mrs Beckham last year abandoned plans to seek a government bailout to furlough 30 members of staff at her fashion brand following a major backlash.
The former singer, whose family is worth £335million, had planned to use the Government’s Covid-19 scheme to pay 80 per cent of the wages of some of her staff.
The fashion brand employed an average of 130 people in 2020 and sent letters to 30 members of staff warning them that they were going to be furloughed under the Government’s scheme for two months, before later performing a U-turn.
The star told The Guardian last April: ‘We will not now be drawing on the government furlough scheme. At the beginning of the lockdown the shareholders agreed with senior management to furlough a small proportion of staff.
‘At that point we didn’t know how long the lockdown might last or its likely impact on the business.
‘The welfare of my team and our business means everything to me.’
The firm denied the U-turn was a result of the public backlash and instead insisted the board ‘now believe that with the support of our shareholders, we can navigate through this crisis without drawing from the furlough scheme’.
Despite the wider struggles, the Victoria Beckham Beauty brand enjoyed a solid first full year of trading, posting £7.3m of sales in 2020.
Products included Posh Lipstick, a nod to the star’s nickname when she was with the Spice Girls.
Representatives for Mrs Beckham have been approached for comment.