The luxury fashion brand has racked up £53.9million in debt after the pandemic hit retail
Victoria Beckham’s clothing company has been struggling with £53.9million in debt since the pandemic and has now been spotted on sale with big discounts.
The luxury brand started in 2008 when the former singer released a small clothing line, but has grown into a wide range of shoes, handbags and other accessories.
Corresponding Email online Victoria Beckham Holdings Group’s total revenues fell 6% due to the global pandemic.
“This group has responded quickly to the impact of the pandemic, controlling its cash and spending, resulting in a significant 57% reduction in its operating losses, thanks to cost savings across the business and the recalibration of its business model to make it sustainable over the longer term.
“Victoria Beckham Beauty continues to expand its portfolio this year with a string of successful launches featuring the best in class in clean luxury beauty and skincare.”
Goods have been offered at a drastically reduced price in recent days – a dress has been reduced by £1,300 on discount site The Outnet.
The site normally offers 30% off Victoria’s items but has many items currently listed at 70% off.
A leopard print blouse has been reduced from £650 to £228 and a midi dress is now on sale for £554 instead of £1,845.
But it’s not all doom and gloom as the former Spice Girl isn’t in a bad financial position.
According to the annual accounts filed with Companies House, her earnings together with husband David Beckham totaled £11.6million in 2020 – more than double 2019’s £4.5million.
Despite the high level of debt, the company is unlikely to go out of business.
A spokesperson for Victoria told Mail Online: “Although 2019 was a challenging year, the company cut its losses in half – a significant step on the road to profitability.
“The launch of the hugely successful beauty line in the same year helped increase overall sales by 7% in 2018 and both companies are focused on profitable growth.
“The presentation of the current AW21 fashion collection was well received by fashion critics and the beauty business has seen several sold-out products in recent months.”
The luxury brand recently launched new designs for the colder months – including floor-length silk dresses (£850), fitted shirts (£290) and slim-leg trousers (£320).