What do Beckhams make and why Victoria does not leave the unprofitable business for years
'01.12.2019'
Source: Air force
Victoria Beckham's business has been causing losses for 11 years in a row. David’s business is not going well either.
Victoria Beckham's fashion brand again reported a loss: in 2018, her business lost 12,3 million pounds ($ 15,6 million) despite the fact that the clothing and accessories of this brand are sold worldwide in more than 400 stores, writes Air force.
The business of the former Spice Girls star has been causing losses for the eleventh year in a row, since the company was founded in 2008.
Victoria Beckham herself says that this project is not out of vanity: she wants to turn it into a profitable business.
“I want the brand to exist in 10, 20, 30, 40 years, and I will have to go to zero and then to profit,” she told the Financial Times in March this year. “We're on the right track, but it won't happen overnight.”
On the subject: David Beckham moved with his children to the USA, leaving Victoria in the UK
To increase sales, the company tried different ways: launched its own cosmetics, entered into a partnership with Reebok and announced a price reduction. But the results of the 2018 year were still disappointing.
Not only Victoria Beckham has financial difficulties, but also her husband David.
The total revenue of their business, which is managed by the Beckham Brand Holdings holding company, declined in 2018 by 18% to 45,8 million pounds.
This is partly to blame for another unsuccessful year for the fashion brand Victoria, and partly for Seven Global, which manages the assets of David Beckham.
What do Beckham make
Leaving the sport, David Beckham said that he wanted to seriously engage in the construction and development of the business.
He continues to work as a face, appearing in commercials for L'Oreal, Adidas, Armani, Gillette and Pepsi Co, and occasionally in films.
But also as an entrepreneur, he managed to start the production of his own fashionable goods, shoes and perfume.
Beckham’s multi-stage business consists of the leading holding company Beckham Brand and subsidiaries DB (David Beckham) Ventures and Seven Global, which in turn own shares in various companies, including the football club Inter Miami FC, which the former captain of England wants to make the best club America.
On the subject: Victoria Beckham told about the hereditary disease of their children
In the spring of this year, the ex-footballer and his wife bought out a stake in Beckham Brand Holdings for £ 50 million from their long-term business partner Simon Fuller (former manager of the Spice Girls and creator of the highest-rated TV show in the United States, American Idol) and concentrated control over their a personal brand in their hands.
Despite the decline in profits, the Beckham couple received more than £ 11 million in dividends this year, and there is no reason to talk about the possible bankruptcy of the most popular British athlete. Rather, the newspapers write about "a slight weakening of Beckham's magic", who until now "turned into gold everything that he touches."
David loaned money to his wife’s unprofitable fashion business more than once, and last year DB Ventures also transferred a £ 600 thousand loan to Victoria.
