Victoria Beckham’s eponymous fashion brand received a significant boost of £23m from her husband, former football star David Beckham, within the last three years. This financial injection has been crucial in keeping the brand afloat amidst challenging times. In spring 2016, David Beckham provided his wife’s brand with a £4m loan and £6.6m in cash through his company, DB Ventures. Furthermore, reports from the Mirror indicate that Victoria Beckham Ltd currently owes £12.2m to another one of Beckham’s firms.
Despite the generous support from her husband, Victoria Beckham’s fashion brand has encountered obstacles along the way. The company disclosed an operating loss of £10.2m for the year ending December 2017, despite a 17% increase in sales amounting to £42.5m. Launched in 2008, the brand has garnered a following for its chic and elegant designs, with high-profile celebrities such as Lady Gaga, Kendall Jenner, Selena Gomez, Miranda Kerr, and Olivia Palermo all showing their support.
However, profitability has remained elusive for the brand, mainly due to ongoing investments in infrastructure and expansion into new markets like Asia and the US. CEO Paolo Riva has outlined strategies to achieve profitability in the foreseeable future. NEO Investment Partners, a private equity firm, now backs Victoria Beckham’s brand, recognizing its potential for growth. In a recent article from the Mail on Sunday, it was mentioned that David Beckham is considering stepping back from the business and allowing his wife to take full control.
Despite financial challenges, Victoria Beckham has been proactive in diversifying her brand. The recent launch of an activewear collection in collaboration with Reebok has been positively received, signaling the brand’s willingness to explore new avenues. With the continuous support of her husband and other investors, Victoria Beckham’s fashion brand appears to be moving towards a more sustainable and profitable future.
For more information on Victoria Beckham’s journey in the fashion industry, check out these articles:
1. Vogue – Victoria Beckham’s Fashion Career
2. BBC – Victoria Beckham gets £23m cash injection from husband David
