Business World

Wednesday 21 August 2019

Victoria Beckham's fashion label now valued at €112m following major cash injection

Victoria Beckham in Brown Thomas, Dublin, last month. Photo: Leon Farrell/Photocall Ireland
Victoria Beckham in Brown Thomas, Dublin, last month. Photo: Leon Farrell/Photocall Ireland

Christopher Williams

Victoria Beckham's fashion empire has been valued at £100m (€112m) following a major cash injection from the man behind the UK success of French bakery chain Paul.

Neo Investment Partners, based in the West End of London and led by David Belhassen, a former Goldman Sachs banker who ran Paul until 2010, has invested £30m (€33.5m) in Victoria Beckham Ltd in exchange for a minority stake.

The company is controlled by Beckham Brand Holdings, which is jointly owned by Victoria and David Beckham along with the former Spice Girls Svengali Simon Fuller. Senior management are also minor shareholders.

The fashion designer has been steadily building her brand over years and is now considered a high-street favourite.

Victoria jetted into Dublin in October for a whirlwind visit where she promoted her second collection with Estée Lauder. She said that she had a special affinity with Dublin after she and David got married in the city in 1999.

"I love Dublin, Harper took her first steps here five years ago and I got married in Dublin," she said.

It is understood that the cash injection in her fashion empire will be used to fund an international e-commerce expansion for the fashion label, which makes clothes, shoes, glasses and accessories.

The label has two own-brand stores, in London and Hong Kong, and among others is stocked by Harvey Nichols and Selfridges in the UK and Bloomingdale's in the US.

Victoria Beckham dresses typically retail for more than €1,100, but the label has recently sought out shoppers on tighter budgets. This year it launched its first collection at Target, a US supermarket chain, with most items priced below €55.

The deal with Neo is due to be finalised soon and comes as Victoria Beckham Ltd prepares to move into new 15,000sqft offices in Hammersmith. The company was founded in 2008 and has grown from three to 180 staff.

According to investment sources, the deal will value Victoria Beckham Ltd at roughly twice last year's sales. It is understood the company remains loss-making as it funds expansion. In 2015, the most recent year for which accounts are available, it reported a pre-tax loss of €4.7m on sales of €40.7m. The cash injection could help Victoria Beckham Ltd reduce its debt pile, which at the end of 2015 stood at €12m. (© Daily Telegraph, London)

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