Victoria Beckham's fashion empire has received an additional £6.2 million loan from shareholders, including David and Victoria Beckham and private equity firm Neo, as pre-tax losses widened to £4.8 million in 2024, up from £2.9 million the previous year. The injection comes despite a 26.5% surge in sales to £112.7 million, marking the brand's fourth consecutive year of growth.
The accounts filed at Companies House reveal 'material uncertainties which may cast significant doubt over the group and company’s ability to continue as a going concern.' These uncertainties include the need to extend a £4.1 million bank loan due for repayment next week, though a loan extension is expected to be signed later this week.
Sales growth was driven by strong online performance and the London flagship store, with cosmetics sales leaping 24% thanks to new products like a concealer pen and eyeliner. The latest cash injection follows £6.9 million provided by shareholders last year, which includes former Spice Girls manager Simon Fuller and the Beckhams.
The funds are intended to 'sustain the group’s growth plans,' drive cost reductions, and streamline operations. Plans include expanding into more department stores in the UK and France, and a boost from Victoria Beckham's upcoming Netflix docuseries focusing on her spring/summer Paris fashion week show.
Despite the losses, the brand's net liabilities narrowed by nearly £10 million to £29.7 million. Victoria and David Beckham are together worth £500 million, according to the Sunday Times Rich List, with David Beckham earning £28 million in dividends from his personal brand empire since 2022.
