Victoria Beckham took the helm of a fly-on-the-wall docuseries earlier in the autumn, which explored her journey from finding fame as Posh Spice to her career as an illustrious fashion designer. But now, an insider reveals that her brand has been plagued by a new financial crisis – including ‘continued liabilities, widening losses and a negative net worth’ – which has resulted in her looking to sell.
The decision has left Victoria, 51, feeling humiliated, particularly in the wake of her Netflix three-parter. A source says, ‘Anyone reading the paperwork can see the pressure. This isn’t unusual for luxury brands, but Victoria’s label has carried that burden for a long time. People are starting to wonder how much longer the family can keep supporting it.
‘Victoria is devastated – the brand means everything to her. She’s embarrassed the business is still struggling, especially after filming the documentary. She thought that chapter was behind her, but it’s happening all over again. She’s under no illusions though – the numbers aren’t easy to ignore.’
The source adds, ‘Victoria wants around £350 million – that’s the sales figure being floated. It’s ambitious, but that’s the dream scenario. She wants a buyer who sees long-term potential. And, frankly, she needs the deal.’
After the Spice Girls officially disbanded in 2001, Victoria focused on distancing herself from her pop beginnings and launched her eponymous fashion line in 2008, with her beauty brand established 11 years later.
The empire has notoriously failed to make a profit, and this year alone, shareholders – including Victoria and husband David, 50, along with private equity firm Neo – have injected a further £6.2 million loan, with losses reported to have widened to almost £5 million.
Speaking candidly in her Netflix series, Victoria reflected on the ‘serious trouble’ her brand has been in over the years, including times it’s been ‘millions of pounds in the red’.
Revealing how she struggled to talk to David – who received his sought-after knighthood in November – the mum of four recalled, ‘I’m going home to my husband, but I’m going home to my business partner as well. He was invested, and I hated it. I absolutely hated it.’
Meanwhile, David – who with Victoria shares Brooklyn, 26, Romeo, 23, Cruz, 20, and Harper, 14 – reflected on how hard it must have been for his wife to ask him for a bailout. He said, ‘Part of that conversation broke my heart, because Victoria is a proud woman. That was hard for both of us, because I didn’t have the money to keep doing this.’
And now, after business newsletter Puck reported that Victoria’s brand has engaged bankers Rothschild & Co to facilitate the sales process, the source adds, ‘David thinks they can’t keep pouring money in. He adores her and wants her dream to work, but even he’s saying maybe it’s time to let go and it really seems they’re on the verge of giving up. He’s always been her rock. But he knows they need a plan that doesn’t depend on endless cash injections.’
