Victoria Beckham is on the verge of bankruptcy, with a debt of $ 55 million

Expensive price but less impressive design makes Victoria Beckham's fashion brand lose points in the public eye. Recently, the media reported that their high-end fashion brand is saddled with a debt of £ 53.9 million (more than VND 1.5 trillion).

The Beckham family and Fuller each own a third of Beckham Brand Holdings, which includes Victoria Beckham's fashion company and the David Beckham brand. Victoria Beckham Holdings Limited - the company that owns Victoria Beckham's fashion business. Known for high-end product lines and for international stars, Victoria's fashion business quickly became known thanks to the hotness of Beckham's fashion business wife.

Victoria and David Beckham.

Victoria Beckham has opened a fashion brand since 2008 but until now, almost every year she has suffered losses and faced many difficulties in strategy and next development steps for the brand. According to the report, Ms. Beck's fashion empire only achieved "trickle" profit growth in the first 3 years. By that time, her brainchild was a "newbie" in this extremely competitive industry.

In 2016, Victoria's company could have even lost nearly 5 million USD if it did not receive a grant of 6.7 million USD from her husband's business. At that time, explaining the cause of the loss, the brand representative blamed the payment for product design and marketing to customers for not being effective but expected.

On August 13, the Daily Mail reported that Victoria Beckham's high-end fashion brand was saddled with a debt of 53.9 million pounds (about 55.2 million dollars). It is known that in 2008 Victoria Beckham established her own fashion label by launching a small collection of dresses. The brand quickly developed and expanded its business scope. Some typical items here include bags, coats, shoes and jewelry.

However, the brand now faces an uncertain future. Speaking to The Mirror, a spokesperson for Victoria said: "Victoria Beckham Holdings' total revenue fell 6% to £36.1 million (about $37 million) due to the impact of the global pandemic. bridge". This figure used to be £38.3 million (about $39.3 million) in 2019.

However, in the face of the pandemic's impact, the group reacted quickly. They control cash and spending, and recalibrate the business model for long-term, sustainable operation. As a result, the loss was significantly reduced to 57%.

Not only that, the Daily Mail also said that in 2018, when profits fell, leading to debt, the business complied with the wishes of shareholders to cut production costs, focus on promoting the brand on the Internet. digital channels and tailor products to be closer to Victorian aesthetics and values. However, this strategy was judged unsuccessful when the company's profits were decreasing and the debt showed no sign of stopping.

The fashion brand founded by Victoria Beckham carries a debt of up to $ 55.2 million.

Victoria Beckham used to love colorful outfits, showing off her bust.

According to the Daily Mail, despite the huge loss, the Beckham couple's profit doubled. Based on accounting reports filed at Companies House, the pair earned £11.6 million (about $11.9 million) in 2020 - an impressive figure compared with £4.5 million (about $4.6 million). ) in 2019.

In a report filed in 2021, several auditors warned that they had "substantial doubts" about the ability of the Victorian fashion company to stay afloat, particularly given the company's debt burden of more than £46 million. UK (about 47.2 million USD) since its founding.

Victoria Beckham's fashion brand has been losing money for many years in a row.

Friends of the former Spice Girls member said at the time that she was determined to keep the company alive, despite many detractors claiming it was just a pipe project. One person commented: "This is what gives Victoria its identity, she loves it and despite all the obstacles, she absolutely loves and is passionate about it."

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