Victoria Beckham’s high-end fashion company ‘is £53.9m in debt’

Victoria Beckham’s high-end fashion company is said to be in debt of £53.9 million.

The 48-year-old fashion designer launched her fashion label in 2008 with a small collection of dresses. It quickly grew into an extensive range that now includes handbags, jackets, shoes and accessories.

But now the brand faces an uncertain future as a spokeswoman for Victoria confirmed the numbers for its fashion label with The mirror.

A report said: ‘Total revenue for the Victoria Beckham Holdings group fell 6% to £36.1m (2019 – £38.3m) due to the effects of the global pandemic.

“This group reacted quickly to the effects of the pandemic and managed its cash and spending, leading to a significant reduction in its operating losses of 57%, thanks to cost-cutting across the company and the recalibration of its business model to make it sustainable for the long term.

“Victoria Beckham Beauty continues to expand its portfolio with a number of successful product launches this year featuring best-in-class clean luxury beauty and skin care.”

Despite major losses, Beckham’s global empire has reportedly doubled its profits. Financial statements filed with Companies House in London showed that despite the pandemic, the couple made £11.6million in the year ending December 2020 – compared to £4.5million in 2019.

In the accounts submitted in 2021, auditors warned of “significant doubt” about Victoria’s fashion company’s ability to continue operating when it was reported that the company had accumulated debts of more than £46m since launch.

Friends of the star said at the time that she is determined to continue with her business, even though her detractors have dismissed it as a vanity project.

One said: ‘This is what gives Victoria her identity, she loves it and despite the obvious obstacles, she is a con artist and has a huge passion for it.’

In February 2021, Mrs Beckham’s beauty line she launched in 2019 was revealed to have suffered a loss of £4.7 million.

A spokeswoman for Ms Beckham said: “While 2019 has been a challenging year, the company has halved its losses – an important step towards profitability. The launch of the wildly successful beauty line in the same year helped increase total sales by 7% from 2018 and both companies are focused on profitable growth.

“The showcase of the recent AW21 fashion collection has been well received by fashion critics and the beauty business has seen several sold out products in recent months.”