Victoria Beckham who is worth $444M furloughs 25 employees, to use government scheme to pay salaries
Victoria Beckham's fashion brand took a hit with 25 of her 120 workers forced to take a furlough. A senior executive and chief marketing officer have also quit. The designer has forgone her salary amidst the coronavirus pandemic.
Posh's flagship store in Hong Kong also faces closure as Beckham is now focusing on her fledgling beauty brand. Conversely, her store in London will continue to operate for the foreseeable future.
"Like many, Victoria has reluctantly had to furlough staff members. It wasn't a decision she took lightly but, for the long-term stability and profitability of the company, it had to be done," an insider has reportedly said. "She has been personally keeping all her team involved with emails the whole way through, and has put all of the staff involved on enhanced furlough packages."
"She has even forgone her own salary in order to lead from the front," the source continues to reveal. "Although she is still passionate about fashion, Victoria will really be focusing her efforts on the beauty side now. Overheads for the online business are low, and it’s really beginning to flourish."
"We are working hard to ensure our much-valued VB team are protected by keeping our business healthy," a spokesperson for Victoria said last night. "Having carefully assessed all our options, we made the decision to furlough a proportion of staff on an enhanced package."
All of this is cute and desperate damage control, but Twitter is livid about the former Spice Girl's move.
"Victoria Beckham, along with her husband, have a combined wealth of £335 million yet she has used @RishiSunak's furlough scheme to pay her staff, therefore taking taxpayers' money," tweeted a user. According to the scheme, which is in line with British Chancellor of the Exchequer Rishi Sunak's plan to help firms during the pandemic, her employees would be paid 80% of their salaries by the UK government.
This has simply made many people angry. "Getting the taxpayer to pay your staff #disgraceful."
"#victoriabeckham clearly has no conscience Disgusting using taxpayers cash to prop up her so-called fashion label" tweeted another angry user.
"I never could stand #VictoriaBeckham my hatred now seems more warranted," said another. "Shame on you @victoriabeckham," one tweeted.
"So lovely seeing the pictures of Victoria Beckham and family clapping for the NHS. Then using taxpayers' money that could go towards funding it to subsidize her vanity project and protect their multi-million-pound fortune," said a tweet.
How much is Victoria Beckham worth?
As of May 2019, Victoria and her husband David Beckham's joint wealth is estimated at a staggering £355 million ($444 million). Her handbag collection alone is considered to be worth £1.5 million ($1.8 million).
Two weeks ago, the designer and her ex-footballer husband dished out a whooping £17 million ($21.2 million) on a penthouse in Miami to add to their property portfolio, which includes a £25 million ($31.27 million) mansion in Holland Park, West London, and a £6 million ($7.5 million) barn conversion in the Cotswolds, where the family has been living during the lockdown.
Two weeks before lockdown, the Beckhams reportedly spent £100,000 (over $125,000) on a 21st birthday bash for their eldest child, Brooklyn.