Victoria Beckham, a former singer turned fashion designer, established her eponymous fashion label in 2008
Initially focusing on dresses before expanding into a diverse range of products including handbags, coats, shoes, and accessories.
However, the future of Victoria Beckham’s brand appears uncertain.
Recent reports from Daily Mail indicate that her high-end fashion brand is burdened with a debt of 53.9 million pounds (approximately 65 million USD) as of August 13.
The pandemic and global recession contributed to a 6% decline in Victoria Beckham
Holdings’ revenue to 36.1 million pounds (about 37 million USD) compared to 2019’s 38.3 million pounds (about 39.3 million USD).
Despite these challenges, Victoria Beckham’s corporation has implemented measures to control cash flow and spending
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Resulting in a 57% reduction in operating losses and improved cost efficiency.
However, her designs are being sold at steep discounts, with prices slashed from over $1,000 to $400 – $700
And even up to 70% off in some cases, impacting the brand’s profitability.
Victoria Beckham’s fashion empire has experienced its 6th consecutive year of losses, with a reported loss of $10.5 million in 2020 and approximately $20.4 million the year prior.
Additionally, a recent lingerie and pajama promotion campaign faced criticism for the choice of a model’s youthful appearance.
Despite these setbacks, Victoria Beckham plans to expand her investment portfolio by introducing successful skincare and beauty products.
Meanwhile, the Beckham family’s global empire reportedly doubled its profits, largely attributed to
David Beckham’s business ventures including ownership of Inter Miami Club and endorsement deals with fashion and watch brands.
The Beckham family’s assets are estimated to be around 339 million pounds.
