David and Victoria Beckham and the private equity firm Neo have pumped a further £6.2m into the former Spice Girl’s fashion empire this year as losses widened to almost £5m despite a surge in sales last year.
Sales rose 26.5% to £112.7m in 2024, the brand’s fourth consecutive year of growth, helped by strong sales online and at Victoria Beckham’s London flagship store, as well as a 24% leap in online sales of cosmetics, including a new concealer pen and eyeliner.
However, accounts filed at Companies House show that the shareholders advanced an additional £6.2m loan this year amid “material uncertainties which may cast significant doubt over the group and company’s ability to continue as a going concern”.
These uncertainties included the need to extend a £4.1m bank loan, which the accounts say is due for repayment next week, after pre-tax losses widened to £4.8m, from £2.9m in 2023. It is understood that a loan extension is expected to be signed later this week.
The latest cash injection comes on top of £6.9m in cash and loans from shareholders put into the company last year. Shareholders include the former Spice Girls manager and Pop Idol founder Simon Fuller as well as Neo and the Beckhams.
The accounts said these new funds were to help “sustain the group’s growth plans”, “drive cost reductions” and “a streamlining of operations and creating a model for the longer term”.
Plans include a presence in more department stores across the UK and France, while the brand will get a lift from the launch of Victoria Beckham’s docuseries on Netflix, which will focus on this year’s spring/summer Paris fashion week show.
The business’ net liabilities are £29.7m, a figure that has narrowed by almost £10m on a year before.
Despite the ongoing losses at the fashion and beauty business, Victoria and David Beckham are together worth £500m, according to the latest Sunday Times Rich List.
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David Beckham earned £28m in dividends from his personal brand empire since 2022, as new commercial tie-ins with companies such as Stella Artois and Boss helped to offset losses at his TV production studio.
The former England captain, who retired from professional football in 2013, sold a 55% stake in his businesses in 2022 to Authentic Brands for £200m.