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VICTORIA
Beckham’s fashion label racked up a £12.3million loss last year as
demand for the former Spice Girl’s highend clothes slumped.
Accounts
filed this week show that the pop starturned-businesswoman has failed
to turn around her troubled brand’s fortunes. Sales of its range – which
includes £2,000 dresses and £1,000 handbags – fell by 16 per cent from
£47.6million in 2017 to £35.1million last year. The company has lost a
total of £34.7million since its launch in 2008 and its struggles led Mrs
Beckham to insist earlier this year that it was ‘not a vanity project’.
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| Victoria Beckham in a photo she shared on Instagram |
Chairman Ralph Toledano said demand for the label’s clothing and
accessories had ‘ plateaued’ after years of rising sales. He told trade
journal Business of Fashion: ‘The performance was in line with
expectations, so we were not surprised. Our goal is to reach
profitability as soon as possible. ‘ I firmly believe that our destiny
is in our hands. We have a great talent in Victoria and, if you take
that asset with a dream team, we can do it.’ The brand has been able to
struggle on as Mrs Beckham, 45, has repeatedly dug into her family’s
deep pockets to keep it afloat. Victoria Beckham Limited breached the
conditions of a £10million bank loan earlier this year, but she and her
ex-footballer husband David paid down debts and plugged a funding gap
with a £13.6million loan injection.
In
2017 Beckham Brand Limited, which is controlled by the couple, wrote off
£6.6million of loans owed by her label in return for shares. At the end
of last year, her brand still owed more than £2million to her husband’s
company, DB Ventures Limited, the accounts show.
His
company, which also filed annual accounts this week, saw its profits
drop from £26.5million to £14.8million. Mrs Beckham’s label, which has
to compete with bigger rivals such as Gucci and Mulberry, sells in 400
stores in more than 50 countries.
earlier
this year it said it wanted to widen the range of countries it sold to,
particularly in Asia, and claimed it would be profitable in the fourth
quarter of 2019.
Mrs Beckham said: ‘If I
want this brand to still be here in 10, 20, 30, 40 years’ time, I need
to break even and then I need to be profitable.
‘We’re on the right track to do that, but it’s not going to happen tomorrow.
‘The
company has been trying to improve its performance, launching its own
cosmetics range, striking a partnership with Reebok, and making price
cuts.’
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