Victoria Beckham Raises $40 Million in Private Equity Investment

Pinups in the Post-Weinstein World
November 27, 2017
Next on Meghan Markle’s To Do List: Choose Her Royal Style
November 27, 2017
Show all

Victoria Beckham Raises $40 Million in Private Equity Investment

This post was originally published on this site
Want create site? Find Free WordPress Themes and plugins.


LONDON — Victoria Beckham (the luxury empire, not the woman) is about to get a whole lot bigger.

After years of speculation that her fast-growing namesake fashion brand was a prime takeover target, it was announced on Monday that Ms. Beckham had received £30 million, or almost $40 million, from the private equity firm Neo Investment Partners in exchange for an undisclosed stake in the business.

Ms. Beckham, who founded her line in 2008 alongside her husband David Beckham and the former Spice Girls manager Simon Fuller, said that she was “thrilled” to have found a partner in Neo, which is run by the former Goldman Sachs banker David Belhassen.

The Spice Girl turned fashion designer added that the investment would allow her company to expand its retail operations, both online and offline, to push into new product categories and to move its staff into larger headquarters in West London next spring.

“As my business enters into its second decade of operation, this investment and partnership signals an incredibly exciting new chapter,” Ms. Beckham said.

She said that she had been looking for an investor who understood her perspective on fashion and beauty business models and respected her determination to maintain an independent business. “I started my brand from a small room in Simon Fuller’s office with him and David believing in me and supporting my vision,” she said. “I now have an additional partner who is showing that same belief.”

Known initially for its chic, sleek dresses with internal corsetry and more recently for collections centered on soft, slouchy tailoring, Victoria Beckham has moved in the past nine years from a single ready-to-wear line into accessories, eyewear and footwear. She has added a second line, Victoria by Victoria Beckham, flagship boutiques in London and Hong Kong, and a series of collaborations with the likes of the mass-market retailer Target and the cosmetics group Estée Lauder.

Earlier this month, the brand announced a new partnership with the athletics brand Reebok.

Neo, also founded in 2008 and based in London, has a focus on the European luxury sector, with investments in Ami Paris, a contemporary men’s wear brand, and Valextra, the Italian luxury leather goods brand.

“Victoria Beckham is one of the most exciting entrepreneurs I have the pleasure to work with,” Mr. Belhassen said in a statement following news of the deal. “She is an inspiration to millions of women around the world and she has built a unique, differentiated luxury brand with a strong identity and very high potential.”

Mrs. Beckham’s fashion business is controlled by Beckham Brand Holdings, which is jointly owned by the Beckhams and Mr. Fuller. The investment by Neo is expected to give it a valuation of about £100 million.

Yet despite a plum position on the New York Fashion Week schedule, strong sales across key geographical regions and considerable critical acclaim, the Victoria Beckham brand continues to be unprofitable and has been bolstered by funding from DB Ventures, the company that deals with Mr. Beckham’s many product endorsements.

Revenues for the past two years have come in at around £36 million annually, although the company said revenues for the first half of the 2017 financial year “indicate double-digit growth on the year.”

In 2015 — the last year for which full accounts have been filed — it posted a pretax loss of £4.3 million. It is expected that some of the cash from the Neo investment will go toward paying down accumulated debt.

Still, Mrs. Beckham and her biggest supporters remained enthusiastic after news of the deal and what it could do for the company’s growth. Mr. Beckham said that he was “so proud” of his wife and that he expected the next decade “to be even more exciting” for her business, a sentiment echoed by Mr. Fuller.

“2018 promises to be the most exciting year yet, with the 10th anniversary celebrations and move into new premises,” Mr. Fuller said. “This is a hugely positive time for Victoria Beckham. The continued growth and potential has never been so dynamic.”

Prince Harry is engaged to Meghan Markle, his American girlfriend, the British royal family said.

The prince, the grandson of Queen Elizabeth II, and Ms. Markle, an American actress, will be married in the spring, the royal family said.

In America’s Heartland, the Nazi Sympathizer Next Door

Tony Hovater, a 29-year-old welder, helped form a pro-Nazi group that marched in Charlottesville.

Our national editor responded to reader criticism of a profile of a Nazi sympathizer.

Our national editor responds to readers’ feedback, most of it highly critical, of our profile of a white nationalist in Ohio.

Next on Meghan Markle’s To-Do List: Choose Her Royal Style

The actress is to marry Prince Harry in the spring, and all of fashion is already watching. Who will make the wedding gown and what will it mean?

Amazon, always on the lookout for lower prices, has been aggressively recruiting Indian vendors.

Thousands of Indian sellers have shipped bedding, jewelry, kitchenware and clothing to Amazon warehouses to serve bargain-hunting Americans.

G.O.P. Tries to Corral Tax Bill Holdouts Ahead of Senate Vote

  • Republicans are set to rush their tax plan to the Senate floor, with a vote possible this week.
  • With several Republican senators not yet committed to supporting the $1.5 trillion tax plan, the week is expected to be punctuated by arm-twisting and deal-making.


Did you find apk for android? You can find new Free Android Games and apps.

Comments are closed.