Victoria Beckham loaned £6.4million in desperate bid to save her ailing fashion business after racking up huge losses
VICTORIA Beckham is set to take a £6.4million lifeline to save her ailing fashion business.
The former Spice Girl has been offered the loan after her firm racked up £42million losses over four years.
This week’s deal — backed by a private “investment agreement” — should allow Posh to retain control of flagship Victoria Beckham Ltd.
If the cash from Luxembourg-based London Investments Sarl is not repaid, it could be converted into shares in VB Ltd.
But a financial expert said: “Posh wouldn’t want to relinquish any more control in a business which is formed in her name. Yet desperate times require desperate measures. The move will secure a much-needed cash injection — and after racking up record losses last year of some £12million they can’t afford not to do something radical.”
London Investments put £30million into the business in 2017 for a 28 per cent share.
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Its latest cash injection was revealed in new records published this week, as a major restructuring of the business was announced.
It comes after Victoria Beckham Ltd last year had to be bailed out with £16million by a mystery shareholder, thought to be Posh’s husband David.
The Beckhams currently control 48.4 per cent of shares while their friend and business partner Simon Fuller owns 23.6 per cent.
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