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Victoria Beckham’s fashion business racks up total losses of over £46m

Victoria Beckham’s fashion business racks up total losses of over £46m as auditors warn of ‘significant doubt’ about firm’s ability to continue running

  • In accounts from earlier this month, auditors warned of ‘significant doubt’
  • Mrs Beckham recorded losses of £11.8 million for 2019 and £12.3 million for 2018
  • Accountants said business will need continued shareholder financial support 
  • Mrs Beckham, 46, launched her fashion label in 2008 with a small collection of dresses. It grew to an range that includes coats, shoes, and accessories
  • Last month, it emerged that she and her husband David had paid themselves £40,000-a-day thanks to the profit made by his company, DB Ventures 

Victoria Beckham’s fashion business faces an uncertain future after racking up total losses of more than £46 million since it launched.

In accounts submitted earlier this month, auditors warned of ‘significant doubt’ about the company’s ability to continue operating. 

It came after Mrs Beckham recorded losses of £11.8 million for 2019 and £12.3 million for 2018.

While the former Spice Girl’s publicists sought to put a positive gloss on the figures, accountants said the business will need continued financial support from shareholders to keep it going.

‘These events or conditions indicate that a material uncertainty exists that may cast significant doubt on the company’s ability to continue as a going concern,’ the auditors wrote.

Victoria Beckham’s (pictured in 2018) fashion business faces an uncertain future after racking up total losses of more than £46 million since it launched

Mrs Beckham, 46, launched her fashion label in 2008 with a small collection of dresses. It swiftly grew to an extensive range that now includes handbags, coats, shoes and accessories.

Friends of the star say she is determined to continue with her company 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 its obvious obstacles, she is a grafter and hugely passionate about it.’

Last month, it emerged that she and her husband David had paid themselves £40,000-a-day thanks to the profit made by his company, DB Ventures, which has covered Mrs Beckham’s losses in previous years. 

She attracted criticism last year for trying to use the Government’s furlough scheme to pay 30 of her 120 staff and was forced into an embarrassing U-turn.

Last week, it emerged that Mrs Beckham’s beauty range she set up in 2019 has suffered a loss of £4.7 million.

A spokeswoman for Mrs Beckham said: ‘Whilst 2019 was a challenging year, the business halved its losses – a significant step in the road to profitability. The launch of the hugely successful beauty line in the same year helped drive overall revenues up 7% on 2018 and both businesses are focussed on profitable growth. The showcase of the recent AW21 fashion collection has been well-received by fashion critics and the beauty business has seen multiple sell-out products in recent months.’ 

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