Victoria Beckham's fashion brand is $65M in debt after pandemic despite hefty price tags

The company launched by the former Spice Girl is still in the red to the tune of $65.21 million

PUBLISHED AUG 15, 2022

The worldwide business of David and Victoria Beckham allegedly increased its earnings, earning $14.03 million despite the significant losses (Facebook and Jeff Spicer/Getty Images)

LONDON, ENGLAND: In the latest news about the Beckhams, Victoria Beckham is suffering a debt of over $65 million in her upscale apparel brand. In 2020, the designer label and her new cosmetics company lost $7.98 million. It ran accumulated debts of $18.87 million in 2019.

With $35.09 million raked in from other business endeavors by the Beckhams, the company launched by the former Spice Girl is still in the red to the tune of $65.21 million. Victoria's spokesman acknowledged that the data for her clothing line, which offers pricy $600 sweaters and $480 jeans, was true.

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Victoria-Beckham-opens-store-in-London (Photo via PA)

The losses of Beckham's accoutre line have been labeled the result of a sudden crisis brought about by the pandemic.

According to a study, the consequences of the global pandemic caused the Victoria Beckham Holdings group's total revenues to drop by 6% to $43.68 million (2019 - $46.34 million). The worldwide business of David and Victoria Beckham allegedly increased its earnings, earning $14.03 million despite the significant losses.

David Beckham and his wife Victoria Beckham pose for a photo with his statue at Dignity Health Sports Park on March 02, 2019 in Carson, California. — David Beckham and his wife Victoria Beckham (Meg Oliphant/Getty Images)

In spite of the pandemic, their combined economic interests generated that amount in 2020. The two also paid taxes to the tune of $3.02 million and received total dividends of $18.15 million.

They made $14.03 million in the year ending in December 2020, as reported in annual reports filed with Companies House in London this week, compared to $5.44 million in 2019. David's partnerships with companies like adidas, watchmaker Tudor, and Haig whiskey contributed significantly to the money.

A report said, “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." It added, “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.”