VICTORIA BECKHAM IS LOOSING HER FASHION HOUSE

The founder of the British fashion house, Victoria Beckham took out a £ 6.4 million (about $ 7.9 million) loan to save the company - the Covid-19 pandemic hit her well-being badly.

Despite the help from her husband David Beckham, who invested about $ 20 million in his wife’s business last year, the former leader of Spice Girls was unable to avoid multi-million dollar losses. Now she plans to avoid bankruptcy at the expense of the borrowed funds.

The experts note that over the past 4 years, the Victoria Beckham trademark has brought continuous losses to its owners.

The fashion house lost $ 52 million and was one step away from insolvency. The April scandal over Victoria’s attempt to attract the state support aimed at the fight against the pandemic undermined the brand’s reputation. To receive the state support aimed at the partial compensation of salaries, the businesswoman tried to leave 30 of her employees without payments.

British taxpayers bombarded the designer with angry comments, pointing out the welfare of the Beckham couple. We should recall that it is estimated at £ 335 million. As a result, the employees remained at their jobs and the state budget was not affected. The only victim of the scandal was Beckham herself, forced to save her reputation by the statement that she would not receive a salary until the end of the coronavirus epidemic in the UK.

Now, the main problem for the brand owner will be maintaining control over the fashion house, say the experts.

The share of Victoria and David in the company Victoria Beckham Ltd. makes up about 48.4%. The share of 23.6% is also owned by the British producer Simon Fuller. The last part of the brand’s assets is owned by London Investments Sarl, a Luxembourg-based company that invested $ 37 million in a fashion house several years ago.

It is curious that the current loan has been issued as a private investment agreement, the pledge of which is the shares of Victoria Beckham Ltd. If the debt is not paid on time, the funds received will turn into shares, and the Luxembourg Company London Investments Sarl will become their owner. In fact, this can lead to the fact that a brand based on the personal name of the founder will come under the control of the third parties.