Gwyneth Paltrow had better watch her. Victoria Beckham aka Posh Spice aka the original ambitious celebrity is launching her own lifestyle and health brand in the United States. Rumor has it that she is seeking to be a direct competitor to Paltrow’s $ 250 million Goop Empire. The company was registered “Victoria Beckham” and “VB”. Paltrow started Goop in 2008, when she was an American living in London with her husband Chris Martin. She became infamous for selling $ 900 t-shirts and candles with flavors such as “It smells like my orgasm” and “It smells like my vagina”. Posh Spice is not expected to be so rude with its offers. Beckham and her husband David are huge in the US and their popularity could translate into sales for his struggling fashion brand.
This latest move could be a lifeline for Victoria Beckham’s finances. It has accumulated $ 53 million in losses since 2016. In 2017, a Luxembourg company invested $ 38 million in its fashion empire for a 28% stake in the company. Victoria and David Beckham control 48.4% of the shares of his company. Simon Fuller owns 23.6%. Victoria Beckham Holdings Limited has suffered losses every year since 2013. Conversely, her husband’s company, DB Ventures, has seen its profits drop by about 50% from 2017 to 2018. David has loaned Victoria over 750 $ 000 to relaunch his business after bankruptcy. $ 29 million in his business in 2018.
Victoria’s fashion empire’s revenue grew from $ 53.4 million in 2017 to $ 45 million in 2019. Losses skyrocketed to $ 53 million. Posh’s company has also repeatedly violated the terms of a $ 12.5 million loan from HSBC. Because of these numbers, the company was restructured last year in the hope that it would then be closer to the Beckham aesthetic. Beckham’s fashion empire also has $ 37.7 million in new funding to try to save the brand. This money was used to hire new executives. There are also allegations that David Beckham has sunk nearly $ 14 million of his company’s profits into Beckham Brand Holdings, of which he and Victoria are co-owners.
The Victoria fashion company’s losses have been blamed on a number of things, including Beckham’s own designs as well as branding and sales.
Hoping she can turn the tide. A tip, Posh Spice, maybe $ 11,000 for a coat is a bit steep for today’s market.