UK NEWS – Victoria Beckham’s fashion label saw losses grow 20% to £12.3 million for the year to December 2018

Victoria Beckham’s fashion label has seen losses deepen even further last year, as waning demand and lack of sales for the former Spice Girl’s high-end clothes operation.

Victoria Beckham Ltd saw losses grow 20% to £12.3 million for the year to December 2018 as it said demand “plateaued” in published accounts.

The company, has not made a profit since it was formed in 2008, saw sales dive due to weaker wholesale demand.

Ralph Toledando, chairman of the company, noted sales of its clothing and accessories stagnated during 2018 after years of growth.

Although in an interview with trade title 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.”

The company is controlled by Mrs Beckham ( Posh Spice)  and her former England footballer husband David, through their Beckham Brand Holdings company.

The performance was in line with shareholder expectations after “cutting costs, focusing on its digital channels and refining the product to more closely reflect Victoria Beckham’s aesthetics and values”, the business said in the newly released Companies House accounts.

It stated wholesale revenues grew by double digits in the UK, but “current challenges affecting department store retailers” resulted in a decline in international markets.

Sales have increased in certain segments of the business while losses have “significantly reduced” in 2019, the company said.

It said it expects to become profitable in the fourth quarter of the year and has an increased wholesale order book for 2020.

At the Euro Weekly News we asked accountant  Steve Williams of his view on the latest published accounts he said ” Sorry just can’t see it – no profit in 11 years – just can’t see plugging losses and my prediction is that he holding company will at some stage have to bail it out”