The luxury fashion brand racked up debts of £53.9 million after the pandemic put a strain on the retail industry
Victoria Beckham’s clothing company has been struggling with debts of £53.9 million since the pandemic and has now been spotted on sale with large discounts.
The luxury brand started back in 2008 when the former singer released a small collection of dresses, but it has grown to a large range of shoes, handbags and other accessories.
According to Mail Online the total revenues for the Victoria Beckham Holdings group fell by 6% because of the global pandemic.
“This group rapidly responded to the effects of the pandemic and controlled its cash and expenditure which led to a significant reduction in its operating losses by 57%, thanks to cost efficiencies across the business and the recalibration of its business model to make it sustainable for the longer term.
“Victoria Beckham Beauty continues to expand its portfolio with a number of successful product launches in this year with the best in class in clean luxury beauty and skincare.”
In recent days merchandise has been on sale for a drastically reduced price – one dress had a reduction of £1,300 on the discount site The Outnet.
The site usually offers 30% off Victoria’s items but has many items currently listed at 70% off.
A blouse with a leopard print has been reduced from £650 to £228 and a midi dress is now on sale for £554 down from £1,845.
But it’s not all doom and gloom for the former Spice Girl is not in a poor financial position.
According to annual accounts filed with Companies House her earnings combined with her husband David Beckham were £11.6 million in 2020 – which is more than double what they made in 2019 – £4.5million.
Despite the large debt it is not thought that the company will stop operating.
A spokesperson for Victoria told Mail Online: “Whilst 2019 was a challenging year, the business halved its losses – a significant step in the road for profitability.
“The launch of the hugely successful beauty line in the same year helped drive overall revenues up 7% in 2018 and both businesses are focussed on profitable growth.
“The showcase of the recent AW21 fashion collection has been well-received by fashion critics and the beauty business has seen multiple sell-out products in recent months.”
The luxury brand has recently released new designs for the colder months – including floor length silk dresses (£850), fitted shirts (£290) and slim leg trousers (£320).