Victoria Beckham's Business Empire Faces Potential Sale
Rumours are swirling through the fashion industry that Victoria Beckham may be preparing to sell her eponymous fashion and beauty empire. According to reports from business newsletter Puck, the former Spice Girl has engaged bankers Rothschild & Co to facilitate a potential sale process.
Sources close to the pop star-turned-fashion designer have remained notably tight-lipped about the speculation. Rather than offering outright denials, one insider revealed they are 'always thinking about growth and future opportunities' - echoing the approach taken by fellow British designer Stella McCartney when she sold a significant stake in her business to French luxury giant LVMH.
The Financial Picture: Losses and Loans
The potential sale comes despite the brand's well-documented financial challenges. The most recent filed accounts show losses of £4.8 million, with outstanding loans totalling £6.2 million from Victoria herself, her husband David Beckham, and investment house NEO.
The Beckhams have been supporting the business from their personal fortunes since its launch in 2008. In 2019, NEO provided a crucial £30 million injection that Victoria acknowledged in her Netflix documentary as having saved the company from collapse.
Beauty Business Emerges as Star Performer
While the fashion division has struggled to achieve profitability, Victoria's beauty line has become a remarkable success story. The cosmetics business has seen online sales surge by 24% in 2024, with one of her £32 eyeliner pencils selling every 30 seconds.
The recent launch of her Foundation Drops, priced at £104 for 30ml, has caused a sensation in the beauty world. Despite the premium price point, eight of the nineteen shades have already sold out online. The product was developed with scientist and skincare brand founder Augustinus Bader, promising a 'minimalist formula' that melts into the skin.
Leading beauty industry journalist Rachel Strugatz confirmed the scale of the operation, noting that the brand is on track to achieve $100 million in net sales this year, with approximately 70% of revenue generated through their website.
Why Beauty Could Attract Major Buyers
Industry analysts suggest that the beauty division, rather than the fashion line, will be the primary attraction for potential acquirers. The beauty sector has seen significant consolidation in recent years, with major players snapping up successful smaller brands.
Recent notable acquisitions include:
- Luxury house Kering buying perfumier Creed for $3.5 billion in 2023
- L'Oreal's purchase of Kering's beauty division for $4.7 billion
- e.l.f. Cosmetics acquiring Hailey Bieber's Rhode brand for nearly $1 billion earlier this year
A spokesman for Victoria Beckham has declined to comment on the potential sale, maintaining that no official statement will be made until after any transaction completes. As the fashion world watches closely, the question remains whether this could finally represent the business breakthrough Victoria Beckham has been working toward since transitioning from pop star to fashion entrepreneur.
