Massive Problem Brewing For David And Victoria Beckham
Victoria Beckham’s fashion brand is believed to have filed a loss of $7.3 million.
UK newspaper The Sun is reporting that the Spice Girl-turned-designer made the substantial loss even though she borrowed $10 million from husband David’s businesses.
The news comes just days after it was revealed the business could be closed down after it failed to file its accounts on time.
The firm, owned by Victoria and founded in 2008, recorded profits of $61.3 million in 2015.
It’s a different story for David Beckham, however, who made a profit of $73.9 million, which apparently included ‘a $5.6million pledge — along with Beckham Brand Holdings Ltd, to secure the banking arrangements of Victoria Beckham Ltd'.
The paperwork went on to reveal the exact sum owed by Victoria to David's company: 'At the balance sheet date, the amount owed by Victoria Beckham Limited was $11,213,362.
The reports have been slammed by Beckham Brand Holdings, who told the Daily Mail 'This misrepresents how their businesses operate.
'There is a private holding company, (Beckham Brand Holdings Ltd), owned equally by Victoria, David and Simon Fuller’s XIX, which oversees all the Beckham businesses which report a substantial profit for 2015.
'These businesses may be funded in different ways at any point in time, which may entail a mixture of bank debt, intercompany loans or equity investment.'
Victoria is said to be the highest paid director on the accounts, with a salary of £700,000.