Victoria Beckham’s fashion business is reported to have been handed a £6.4 million lifeline after racking up ‘huge losses.’
This week Victoria’s empire is said to have been supported by a private ‘investment agreement’, sources have disclosed to The Sun, that will allow Posh to keep control of Victoria Beckham ltd.
A financial expert told the paper “desperate times require desperate measures.”
Losses at Victoria Beckham Ltd grew by 20% in the year following December 2018, the Mirror previously reported.
Ralph Toledano, the chairman of the business, said sales of its clothing and accessories had stagnated during the period after years of growth.
In an interview with trade publication The Business of Fashion, he said: “The performance was in line with expectations, so we were not surprised. Our goal is to reach profitability as soon as possible.
“I firmly believe that our destiny is in our hands. We have a great talent in Victoria and, if you take that asset with a dream team, we can do it.”
Victoria’s business came under fire in April this year after she applied to use the government’s furlough scheme to pay her staff, despite being worth an estimated £350million with her husband David.
She later reversed the decision to apply for public money after drawing huge criticism.
In a statement given to the Guardian Victoria assured customers that the ‘welfare’ of her team mean everything to her.
At the beginning of the lockdown the shareholders agreed with senior management to furlough a small proportion of staff.
At that point we didn’t know how long the lockdown might last or its likely impact on the business.
“The welfare of my team and our business means everything to me.”