Victoria Beckham’s fashion brand takes new hit as she furloughs 25 of her 120 workers over coronavirus crisis
VICTORIA Beckham’s fashion brand has taken a new hit with the company furloughing 25 of her 120 workers.
The designer has chosen not to take her salary during the coronavirus crisis and has lost yet another senior executive after her chief marketing officer quit.
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In addition, Posh’s flagship store in Hong Kong faces closure as the former Spice Girls singer now focuses her attentions on her fledgling beauty brand.
A source said: “Like many, Victoria has reluctantly had to furlough staff members. It wasn’t a decision she took lightly but, for the long-term stability and profitability of the company, it had to be done.
“She has been personally keeping all her team involved with emails the whole way through, and has put all of the staff involved on enhanced furlough packages.
“She has even forgone her own salary in order to lead from the front.
“Although she is still passionate about fashion, Victoria will really be focusing her efforts on the beauty side now. Overheads for the online business are low, and it’s really beginning to flourish.”
Four years after launching her first Far East store, the sprawling Hong Kong shop is set to close once the crisis is over. But the London store will continue to operate for the foreseeable future.
Victoria, who turned 46 on Friday, recently declared 20 per cent of all profits will go to food banks during the pandemic, despite her firm announcing over £12million losses last year.
Cuts have seen her ditch expensive plant pots in her West London HQ and lose her chauffeur.
Her chief marketing officer’s departure means seven members of staff have quit since January.
Last night, a spokeswoman for Victoria said: “We are working hard to ensure our much-valued VB team are protected by keeping our business healthy.
“Having carefully assessed all our options, we made the decision to furlough a proportion of staff on an enhanced package.”
Victoria Beckham Limited has not made a profit since it launched in 2008.
And despite being praised by experts, sales fell 16 per cent to £35million, according to accounts filed in November.
Victoria said at the time: “We’re on track to break even, but it’s not going to happen tomorrow.”