Victoria Beckham's fashion business has received a further £6.2m loan from shareholders, including David and Victoria Beckham and private equity firm Neo, as losses widened to nearly £5m despite a surge in sales. Accounts filed at Companies House show that sales rose 26.5% to £112.7m in 2024, marking the fourth consecutive year of growth, driven by strong online sales and the London flagship store, as well as a 24% increase in online cosmetics sales.
However, pre-tax losses widened to £4.8m, up from £2.9m in 2023, and the company faces 'material uncertainties' regarding its ability to continue as a going concern. These include the need to extend a £4.1m bank loan due for repayment next week, though a loan extension is expected to be signed later this week.
The latest cash injection follows £6.9m in cash and loans from shareholders last year. Shareholders include former Spice Girls manager Simon Fuller, Neo, and the Beckhams. The funds are intended to 'sustain the group's growth plans', drive cost reductions, and streamline operations.
Plans for the brand include expanding into more department stores in the UK and France, and a boost from Victoria Beckham's upcoming Netflix docuseries focusing on the spring/summer Paris fashion week show. Net liabilities stand at £29.7m, narrowed by almost £10m from the previous year.
Despite the losses, Victoria and David Beckham are together worth £500m, according to the Sunday Times Rich List. David Beckham earned £28m in dividends from his personal brand empire since 2022, helped by new commercial tie-ins with companies like Stella Artois and Boss.
