The former Spice Girl had launched her eponymous label in 2008, which had a limited success because it had appeared to struggle over the past few years, but it is now expected to be sold for a sizable profit. She had been designing clothes since the early 2000s.
After years of reported losses, Victoria Beckham is said to be planning to sell her fashion and beauty brands. In her Netflix documentary, the former Spice Girl admitted to struggling with the business at several points, but reports suggest it will have an estimated value of $100 million by the time such a sale takes place.
Last Friday, rumors about Victoria Beckham’s plans to sell started to circulate when it was revealed that the brand’s owner was working with Rothschild &, Co. to conceive a sale started.
The Beckhams’ brand will be up for sale, but one insider claimed that the company is “always thinking about growth and future opportunities.”
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Another suggested they wouldn’t comment until any sales were finished, according to the Daily Mail. Rachel Strugatz, a regular contributor to the business newsletter Puck and a beauty journalist, added that she had been informed that a sale was taking place via financial documents.
“I recently learned that Victoria Beckham, including its fashion and beauty businesses, was either in business or planning to go to business, but a person who examined the relevant financial documents confirmed that it is for sale.”
Rachel went on to explain that the company’s net sales would increase to $100 million in the upcoming year. The company is anticipating a $100 million net sales in the upcoming year, with about 70% of those figures coming from its website.
The fashion brand has not always been so profitable. In 2018, it was reported that the company was losing £4,000 a day. The BBC added that Victoria Beckham Limited reported a loss of £12.3 million that year and had “not made a profit since it launched in 2008”.
In her recent Netflix documentary, Victoria admitted that she had to go to her husband David for help with the business. She said: “I almost lost everything. And that was a dark, dark time. I used to cry before I went to work every day, because I just felt like a firefighter.
We were “tens of millions red,” the statement read. Yes, I’m visiting my husband, but I’m also visiting my business partner, so I’d like to talk to him. He was a big fan, and I detested it because I had to. I detested it without a doubt.
We both sat down, and I think part of the conversation broke my heart because Victoria is a proud woman, and we discussed what we had invested. She was significantly wealthier than I was when we first met. She actually purchased Beckenham Palace, our first home in Hertfordshire.
Therefore, she must come to me and say, “We need some more money, the business needs more money.” Because I didn’t have the money to continue doing this, it was difficult for both of us. And I eventually realized, “This cannot continue.”
Victoria’s beauty business has flourished despite her struggling with her fashion side. A potential buyer is likely to find the business’s beauty side to be most attractive.
For comment, Victoria Beckham’s representatives were contacted.
Source: Mirror
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