Debt almost reached RM300 million, Victoria Beckham is still determined to continue the business
Victoria Beckham’s luxury fashion brand is reported to have a total debt of approximately £53.9 million (RM287 million).
The 48-year-old former member of the Spice Girls group launched a clothing collection label under her own name in 2008, before expanding into other ranges such as handbags, shoes and accessories.
But now the brand is facing a difficult situation when a spokesperson for Victoria confirmed the figure of the debt to The Mirror portal.
In accounts submitted in 2021, auditors cast ‘significant doubt’ about the company’s ability to continue operating as it reportedly amassed more than £46 million (RM248 million) in debt since it was launched.
“Total revenue for the Victoria Beckham Holdings group fell 6 percent to £36.1 million (RM194 million) compared to last year, due to the impact of the global pandemic.
“But they responded quickly and controlled cash and expenses, which led to a significant reduction in its operating losses of 57 percent.
“It is also the result of cost efficiency across the business and the restructuring of the business model to make it sustainable for the long term.
“Victoria Beckham Beauty continues to grow its portfolio with several successful product launches this year and is in a class of its own,” said the recent financial audit report.
Despite the difficulties she went through, the wife of the former football star David Beckham is reported to be determined to continue her business despite being criticized by observers as a ‘futile project’.
“This is Victoria’s identity, she loves it and despite the many obstacles, she is determined to continue,” a friend told The Mirror.
source – Agency
