Victoria Beckham’s fashion brand ‘files loss of £4.6million despite £6.7million loan from husband David’s company’

Victoria Beckham’s fashion brand is said to have filed a loss of £4.6million.
The Sun report that the Spice Girl-turned-design guru made the substantial loss atop borrowing an eye-popping £6.7million from husband David’s businesses.
News of her financial strife comes just days after it was revealed she was formally warned the business could be closed down after failing to file its accounts on time.
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Victoria, who set up her firm in 2008, recorded profits of £36.5million in 2015, yet it was reported in March last year that David transferred £5.2million to the company.
The Sun reveal his company DB Ventures posted a £44million profit on Saturday, the details of which note ‘a £3million pledge — along with Beckham Brand Holdings Ltd, to secure the banking arrangements of Victoria Beckham Ltd’.

 

The paperwork went on to reveal the exact sum owed by Victoria to David’s company: ‘At the balance sheet date, the amount owed by Victoria Beckham Limited was £6,671,744.’
Despite the reports, a representative for Beckham Brand Holdings told MailOnline: ‘This misrepresents how their businesses operate.

 

The store: The Sun report that the Spice Girl-turned-design guru made the substantial loss atop borrowing an eye-popping £6.7million from husband David's businesses (Pictured: Her flagship Derry Street store)

The store: The Sun report that the Spice Girl-turned-design guru made the substantial loss atop borrowing an eye-popping £6.7million from husband David’s businesses (Pictured: Her flagship Derry Street store)

The big boss: Victoria, who set up her firm in 2008, recorded profits of £36.5million in 2015, yet it was reported in March last year that David transferred £5.2million to the company

The big boss: Victoria, who set up her firm in 2008, recorded profits of £36.5million in 2015, yet it was reported in March last year that David transferred £5.2million to the company

‘There is a private holding company, (Beckham Brand Holdings Ltd), owned equally by Victoria, David and Simon Fuller’s XIX, which oversees all the Beckham businesses which reports a substantial profit for 2015.
‘These businesses may be funded in different ways at any point in time, which may entail a mixture of bank debt, intercompany loans or equity investment.’
Victoria is said to be the highest paid director on the accounts, with a salary of £700,000, while the rest of the employees’ salaries amassed to £7.3 million.

The happy couple: The paperwork went on to reveal the exact sum owed by Victoria to David's company: 'At the balance sheet date, the amount owed by Victoria Beckham Limited was £6,671,744'

The happy couple: The paperwork went on to reveal the exact sum owed by Victoria to David’s company: ‘At the balance sheet date, the amount owed by Victoria Beckham Limited was £6,671,744’

Late last month, The Daily Mail’s Sebastian Shakespeare reported that Victoria’s fashion label was formally warned it could be closed down after failing to file its accounts on time.
Shakespeare revealed that Victoria Beckham Ltd, was formally warned that it could be closed down for failing to file its accounts on time for the third year running.
The business was served with a ‘notice of compulsory strike-off’ by Companies House on December 6. ‘Unless cause is shown to the contrary,’ the letter said, ‘Victoria Beckham Limited will be struck off the register and the company will be dissolved,’ by February 5.

Heading on out: Late last month, The Daily Mail's Sebastian Shakespeare reported that Victoria's fashion label was formally warned it could be closed down after failing to file its accounts on time

Heading on out: Late last month, The Daily Mail’s Sebastian Shakespeare reported that Victoria’s fashion label was formally warned it could be closed down after failing to file its accounts on time

It then informed Victoria and her fellow directors that the company, which enjoyed a turnover of more than £34 million in 2014, and all its property would then ‘belong to the Crown’.
It was revealed that it was not only Victoria Beckham Ltd which was due to be closed – Beckham Brand Holdings Ltd was also served with a strike-off notice, on December 13.
BBHL, established in 2014 with her former England captain husband, David, as a director, had a turnover of £51.5 million that year.

The director: Victoria Beckham Ltd was established in 2014 with David as a director. The company had £34 million turnover but it registered a profit of only £1.23 million

The director: Victoria Beckham Ltd was established in 2014 with David as a director. The company had £34 million turnover but it registered a profit of only £1.23 million

Victoria Beckham Ltd was established in 2014 with David as a director. The company had £34 million turnover but it registered a profit of only £1.23 million.
Despite the turnover of Victoria Beckham Ltd, it registered a profit of only £1.23million. The business moved into the black thanks to more help from her husband, without which the company would have made a near £4 million loss.
A friend of the couple insisted that it is merely an administrative problem.
The friend says the accounts for both companies have been audited and signed off by their boards: ‘They have been sent to Companies House, but I understand that there is a backlog. There are no financial problems. This late filing has not impacted the business in any way.’

 

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