Victoria Beckham’s fashion brand has always been loved by glamorous celebs and the rich crowd. But behind the glitzy runway shows and famous endorsements, the business hasn’t always been doing as great as it looks.
Even though sales were impressive — like a £34 million turnover in 2014 — the brand often had trouble making a profit. There were times when her husband, David Beckham, had to step in to help out. In 2016, David reportedly chipped in £5.2 million to keep things running after Victoria spent almost £3 million to open a boutique in Mayfair. That same year, the company was at risk of getting shut down for failing to file its accounts on time — for the third year in a row!
Financial Challenges and Support for Victoria’s Brand
In 2017, a family spokesperson explained that all the Beckham businesses are handled by a joint company called Beckham Brand Holdings Ltd. It’s owned by Victoria, David, and their business partner Simon Fuller. This setup makes it easier to get funds through loans, inter-company lending, or investments.
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But the financial struggles kept coming. In 2019, there were reports that David bailed out Victoria’s brand again with £23 million after it lost £10 million. His company, DB Ventures, gave £6.6 million in cash and secured another £4 million loan for the brand.
CEO Marie Leblanc’s Impact on Growth
Victoria launched her label in 2008, but it has only made a profit in four financial years. In 2018, the company said these losses were due to big spending on design, marketing, and sales.
Thankfully, things have started improving. Since CEO Marie Leblanc took over, the business has cut its pre-tax losses to £2.9 million in 2023, down from £3.1 million the year before. Revenue has jumped to £89.1 million, with three straight years of double-digit growth.
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The business still gets help from shareholders — with £6.9 million going towards inventory and working capital — but there’s hope that the brand will soon be able to stand on its own. If this growth continues, Victoria Beckham’s fashion label might finally leave its money troubles behind.
