Victoria Beckham is reportedly preparing to sell her eponymous fashion and beauty brands in a deal that could value the business at a staggering $100 million.
From Spice Girl to Fashion Mogul: A Rocky Journey
The former Spice Girl, who began designing clothes in the early 2000s, officially launched her Victoria Beckham label in 2008. However, the journey has been far from smooth, with the company facing significant financial difficulties for many years.
Rumours of an impending sale began circulating last Friday, with reports indicating that Victoria Beckham Limited has engaged the prestigious banking firm Rothschild & Co to facilitate the process.
Sources close to the Beckham family have remained tight-lipped, neither confirming nor denying the sale. One insider did reveal, however, that the business is perpetually "always thinking about growth and future opportunities".
Financial Turmoil and a Dramatic Turnaround
The brand's path to profitability has been arduous. In 2018, the situation was particularly bleak, with reports suggesting the company was losing £4,000 a day. The BBC confirmed that Victoria Beckham Limited reported a substantial loss of £12.3 million that year and had failed to turn a profit since its inception a decade earlier.
The financial strain took a significant personal toll, as Victoria candidly shared in her recent Netflix documentary. She described a "dark, dark time" where she almost lost everything. "I used to cry before I went to work every day, because I just felt like a firefighter," she admitted.
The crisis forced her to turn to her husband, David Beckham, for a financial lifeline. "We were tens of millions in the red," she confessed, noting how difficult it was to approach him as both a husband and a business partner.
David Beckham echoed her sentiments, revealing the emotional difficulty of the situation. "That was hard for both of us, because I didn't have the money to keep doing this," he said. "And eventually I was like, this cannot continue."
The Beauty Business Fuels a $100 Million Valuation
Despite the fashion arm's struggles, Victoria's beauty venture has been a resounding success. This flourishing side of the business is now considered the primary asset attracting potential buyers.
Beauty journalist Rachel Strugatz, who writes for the business newsletter Puck, has verified the sale process. "I'd heard recently that Victoria Beckham, inclusive of its fashion and beauty businesses, was either in market or planning to go to market," she stated, adding that "a person who's viewed the relevant financial materials confirmed [that it is for sale]."
Strugatz also provided a crucial financial insight, revealing that the brand is on track to hit $100 million in net sales this year. Notably, approximately 70% of these sales are generated through its website, highlighting a strong digital presence.
This remarkable turnaround from a company once losing millions to one commanding a nine-figure sale price marks a dramatic new chapter for the brand and its founder.
