by Victoria and David Beckham will have to pump more money into her fashion label to keep it afloat after it lost nearly £6m.
The Victoria Beckham label has suffered nine years in the red since it was founded in 2008, newly filed accounts confirm.
Reviewers from the fashion industry – which makes clothes worn by the likes of Gwyneth Paltrow and the Duchess of Sussex – have warned about the brand’s future for the third year in a row as it struggles to turn a profit.
BDO said the company is facing “substantial uncertainty” that questions its ability to continue operating.
A source close to the company said David and Victoria Beckham, both shareholders in the brand, were willing to back the company. Fellow investor Neo Investment Partners, a private equity firm, is also seen as supportive.
The directors wrote in Victoria Beckham Holdings’ accounts: “While they have no formal confirmation of this continued support, the directors have a reasonable expectation that any support will be provided by shareholders.”
Shareholders lent the company £600,000 last year, according to accounts.
Losses at the former Spice Girls star’s company were £5.9m in 2021, up from £8.6m a year earlier.
The business returned to sales growth during the year, with revenues rising 14% to £41m.
The directors said results showed a significant improvement from a year earlier, when pandemic-related lockdowns curbed sales at its wholesale business and flagship store in London.
Victoria Beckham chief executive Marie Leblanc said the company was boosted by strong sales of beauty products.
He said: “We have entered a new chapter for the business and our energy is focused on accelerating growth and taking the brand to its full potential.”
The company’s separate filings for DB Ventures, a vehicle that manages David Beckham’s sponsorship deals, show it paid its highest-paid director a total of £2.1m last year. The highest paid director is thought to be Mr. Beckham.
The revelation comes after recent close scrutiny of Beckham’s role as ambassador for the Qatar World Cup. The former Manchester United footballer has come under fire for taking money from the country due to his poor record on human rights and his stance on LGBTQ+ rights.
The Qatar deal is not included in the latest figures, which cover 2021. They should be included in the 2022 accounts.
The Beckhams were awarded £6.3m in 2021 by a holding company which pays dividends to the couple, documents show. The prizes amount to just over £17,000 a day between them.
