Victoria Beckham’s high end fashion company ‘has debts of £53.9million’

Victoria Beckham’s high end fashion company reportedly has debts of £53.9million.

The 48-year-old fashion designer launched her fashion label in 2008 with a small collection of dresses. It swiftly grew to an extensive range that now includes handbags, coats, shoes and accessories.

But now the brand faces an uncertain future as a spokeswoman for Victoria confirmed the figures for her fashion label with The Mirror.

Fiance: Victoria Beckham’s high end fashion company reportedly has debts of £53.9million

A report said: ‘Total revenues for the Victoria Beckham Holdings group fell 6% to £36.1m (2019 – £38.3m) due to the effects 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 best in class in clean luxury beauty and skincare.’

Despite the big losses, the Beckham’s global empire has reportedly doubled its profits. Annual accounts filed with Companies House in London showed the pair made £11.6m in the year ending December 2020 despite the pandemic – compared to £4.5m in 2019.

Brand: The 48-year-old fashion designer launched her fashion label in 2008 with a small collection of dresses

In accounts submitted in 2021, auditors warned of ‘significant doubt’ about the company’s ability to continue operating when it was reported that the company had racked up more than £46 million since it launched.

Friends of the star say she is determined to continue with her company even though her detractors have dismissed it as a vanity project.

One said: ‘This is what gives Victoria her identity, she loves it and despite its obvious obstacles, she is a grafter and hugely passionate about it.’

Power couple:mDespite the big losses, the Beckham’s global empire has reportedly doubled its profits – racking in £11.6 million in 2020

In February 2021, it emerged that Mrs Beckham’s beauty range she set up in 2019 has suffered a loss of £4.7 million.

A spokeswoman for Mrs Beckham said: ‘Whilst 2019 was a challenging year, the business halved its losses – a significant step in the road to profitability. The launch of the hugely successful beauty line in the same year helped drive overall revenues up 7% on 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.’

Motivated: Friends of the star say she is determined to continue with her company even though her detractors have dismissed it as a vanity project