When Victoria Beckham began her burgeoning fashion empire back in 2008, she had no formal training. Today, that is not unusual; see Rihanna’s Fenty Fashion label or Kylie Jenner’s billion-dollar cosmetics empire. It was Marc Jacobs who gave Mrs Beckham (nee the haughty, stiletto-wearing Posh Spice) the best advice: “He said: If the quality is good, then people can always say they don’t like it because it’s not their personal taste, but no one will be able to say it’s rubbish,” she told the Financial Times in a new interview.
Celebrating the brand’s 10th anniversary last September with a homecoming show in London, eyes zeroed in on the company’s books. While fame, success and wealth surrounds the woman, how well was her business doing, really? In December it was revealed that despite an increase of 17 per cent in sales, Victoria Beckham Limited reported an operating loss of AUD $18.78 million in the year of 2017. Yes, while sales have risen, so too have the losses and the company is in the red.
“We didn’t have anybody who was challenging suppliers, and mills, and factories,” she says. “I think that right at the beginning, I overpaid for things unknowingly. I don’t think anybody was taking advantage, I just think that my people didn’t know they could have pushed back. But I was wearing a lot of hats. This isn’t a vanity project, and if I want this brand to still be here in 10, 20, 30, 40 years’ time, I need to break even, and then I need to be profitable. We’re on the right track to do that, but it’s not going to happen tomorrow.”
Changes were instantly made with the Beckhams making a AUD $56.34 million investment in the company who owns the Beckham Brand – and Simon Fuller’s XIX Entertainment group – NEO Investment Partners. In return for their investment, the couple receive a 28 per cent stake.
Company loss aside, Victoria Beckham the label is estimated to have a net worth of AUD $186 million. According to The Sun, Brand Beckham has seen a recent spike in earning power and the couple have reached AUD $1.3 billion in their joint accounts.
David Beckham’s football-related revenue pours into three companies: which include Footwork Productions, Beckham Brand Holdings and DB Ventures Ltd. According to The Mirror, Footwork Productions has a turnover of $AU389 million, Beckham Brand Holdings $487 million, and DB Ventures Ltd has a balance of $168 million. Mrs Beckham’s former music career pours into Moody Productions which hold another AUD $18.7 million.
“Me and David, love or hate the two of us, we work really hard,” Mrs. Beckham told The Financial Times. “We’ve always worked really hard. Getting success is one thing, maintaining it is a whole other thing.”
Joint billionaires? We’d be breaking that froideur fascade too.