Victoria Beckham's fashion brand gets £23m cash injection from husband David
Victoria Beckham’s fashion business has reportedly received £23m in cash injections from her millionaire husband over the past three years, helping it survive despite its losses.
The former footballer gave her brand a £4m loan and £6.6m in cash through his DB Ventures company in spring 2016. Victoria Beckham Ltd also owes £12.2m to another of Beckham’s firms, according to the Mirror.
Last month, the former Spice Girl’s company revealed an annual operating loss of £10.2m in the year to December 2017, sinking deeper into the red despite a 17% increase in sales to £42.5m.
The brand, founded in 2008, is regularly worn by Victoria Beckham herself, as well as a long list of Hollywood celebrities including Lady Gaga, Kendall Jenner, Selena Gomez, Miranda Kerr and Olivia Palermo.
But the celebrity influence hasn’t been enough for the company to break even. The latest increase in losses was attributed to an ongoing investment in infrastructure, as well as a focus on growth market such as Asia and the US.
Chief executive Paolo Riva has talked about turning a profit in the medium term, and the brand is now backed by NEO Investment Partners, a private equity firm.
In December, Mail on Sunday reported that David Beckham plans to step back from his wife’s business and let her take full responsibility for running the company.
Last week, the fashion designer unveiled her latest venture - an activewear collection with Reebok.
Copyright © 2023 FashionNetwork.com All rights reserved.