Victoria Beckham loses more than 53 million with her fashion brand


By CAPosts 22 February, 2021 - 03:47am 107 views

The sword of Damocles once again hangs over Victoria Beckham's textile company. Although the former member of the Spice Girls and her husband, former soccer player and businessman David Beckham, amass millionaire fortunes - the most conservative estimates put it at around 380 million euros - not all their businesses are so buoyant. A recent audit of accounts on the former's fashion firm affirms that its losses are beginning to be debts of considerable size that can put the business at risk.

According to these auditors, in an information collected by the British newspaper Daily Mail , In 2019, the company lost just over 13.65 million euros, and in 2018 it had lost 14.2 million; in fact, it was then calculated that he was losing around 4,500 euros a day . In total, since its inception, it has had losses of 53.2 million. And all in the absence of knowing the more than likely setback that 2020, a year marked by a decrease in global consumption due to the coronavirus, will have given the brand.

In the auditors' report it can be read: “Events or conditions indicate that there is a material uncertainty that can lead to significant doubt about the company's ability to continue operating. ”

Last May it was learned that Victoria Beckham had come to request aid from the state that would allow her to solve the financial situation that your company was going through the covid. The controversial presenter Piers Morgan even dedicated the phrase to her on a television program: "Spoiled prima donna, the [Government] rescue plan was not for millionaires like you." Beckham had decided to apply an ERTE to 80% of her workforce, so her salaries came from the coffers of the British state, while she covered the 20% that was missing and had decided to do without her own salary and donate the amount to a bank food. After the criticism received, a few days later he decided to back down and renounce state aid. “Initially, the shareholders reached an agreement with the management to suspend a small proportion of the staff. At that time we did not know how long the lockdown was going to last or what impact it was going to have on the business, "Victoria Beckham told The Guardian newspaper .

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The couple's fortunes are uncertain, but inescapably great. Each medium points to a number. For The Times , it would be almost 400 million euros, and the Beckhams would also be among the 50 people who pay the most taxes in the entire United Kingdom. For The Mirror they would already have 750 million euros, and for Forbes only David Beckham would have achieved about 800 million. He has diversified the places to put his money and, above all through his DB investment fund, he has divided his money between football, electronic sports or eSports or even companies that investigate the use of cannabidiol.

David Beckham's investments: from eSports to cannabis

Victoria Beckham's fashion company was born in 2008 and, in this long decade of existence , it has become a critical and public success, although not so much in sales. Their numbers have always been difficult to square. At the end of 2018, a company decided to inject slightly more than 33.5 million euros into the firm. That investment by Neo Investment Partners, the company owned by a former Goldman Sachs banker named David Bellhassen and specialized in luxury brands, contributed that money in exchange for a minority investment in it, but the injection of liquidity was enough for some media claimed that the firm had reached the value of 100 million euros. The designer came to call it "an incredibly exciting new chapter." We will have to wait to see how fashion firms evolve and this in particular after the passage of the covid to see if that emotion becomes sustainable.

Source: Elpais

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