EXCLUSIVE: David Beckham Issues Wife Victoria With Shocking Make-or-Break Ultimatum Over Her Struggling Fashion Business As it Racks up Staggering Debts of $93Million
Pop star turned fashion designer Victoria Beckham's firm owes $93m.
Nov. 29 2024, Published 10:52 a.m. ET
Pop princess Victoria Beckham is facing a "make or break" Christmas at her ailing fashion firm racked up debts totaling a staggering $93m.
Husband and Inter Miami boss David has told his wife he's "watching sales like a hawk" after bankrolling her high-end firm with his millions for years, RadarOnline.com can reveal.
She sells $1,500 dresses and $2,000 handbags and her creations have been well-received by buyers and the fashion industry but so far the firm has not made a penny in profit.
Beckham is facing a 'make or break' Christmas at her ailing fashion firm.
And a source said: "David and Victoria realize that the losses can only go on for so long. This has become a very expensive vanity project and this trading period is make or break for the brand.
"David is an astute businessman and there is only so long he'll continue to pump his millions into the firm. If this was any other business, it would have ceased to trade years ago."
Books that cover the trading period to the end of 2023 show that $50m is owed to firms within the group, which include husband 49-year-old David’s Brand Beckham firm.
Victoria’s husband, David, has told her he's 'watching sales like a hawk' after bankrolling her high-end firm with his millions for years.
Accounts for Victoria Beckham Holdings Ltd show the true extent of the firm's debts.
VBHL also includes cash from 50-year-old Victoria’s make-up line.
The annual accounts revealed that a $77m gross profit, achieved with a turnover of $113m, was wiped out by admin expenses and costs and the firm lost $3.8m, a slight improvement on 2022's $4m.
Accountants also revealed the 'profit and loss account' now stood at $93m in the red. This was up on the previous year’s $89m.
And the bulk of the cash is owed to firms in the group, plus banks.
A source said the couple 'realize that the losses can only go on for so long'.
She has also pumped millions of dollars into her fashion and beauty empire after it made the loss.
The former Spice Girls singer, hubby David, and private equity firm Neo Investment Partners also provided a cash injection of $8.8m last year.
From the cash boost, just under half went to her fashion label to meet working capital requirements as it launched new ranges of bags and belts.
The rest was spent on improving stock levels in Victoria Beckham Beauty, her make-up line.
David Belhassen, a director of the company and founder of its shareholder Neo, said work was underway to make sure the empire was being built "on ever stronger foundations".
Accounts for Victoria Beckham Holdings Ltd show the true extent of the firm's debts.
He said the priority was still "the development of products with the highest standards".
Sales have risen sharply in recent years but the company has struggled to make a profit.
Performance has been boosted by new lines of belts, which now account for more than a fifth of online sales, and a perfume collection in the beauty business.
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Victoria has also pumped millions of dollars into her fashion and beauty empire after it made the loss.
She launched her fashion label in 2008 after leaving the world of music, initially focusing on a small range of dresses. It went on to win 'best brand' at the British Fashion Awards in 2011. The former singer then launched her beauty business in 2019.
The designer’s latest collection shown at Paris Fashion Week was described by Bethan Holt, The Telegraph’s fashion director, as "slick, grown-up and polished".
Victoria said of her work: "I really love creating what I believe women want to wear. I love the fact that I can create what I’m ultimately desiring."
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