David and Victoria Beckham have paid themselves more than £21 million in the last two years, despite Posh’s fashion empire seeing growing losses.
According to new accounts filed with Companies House (via PA Media), the couple gave themselves bumper pay days with dividends from their sport and media empires.
The couple’s accounts for their various businesses revealed a £14.5 million dividend was paid in 2019 – up from £11.1 million in 2018 – with a further £7.1 million handed over in 2020.
The most recent dividends went solely to the Beckhams, after the couple bought out the 33% stake owned in DBVL by XIX Entertainment – a media group run by music mogul Simon Fuller. He retained a stake in Victoria’s fashion business.
However, her fashion label saw continued losses and a breach of covenants over a bank loan, which required a £9.2 million cash injection.
The business – Victoria Beckham Holdings Limited – saw pre-tax losses widen to £16.6 million in 2019 from £12.5 million the year before.
Last year, it breached the financial covenants of a loan with HSBC, which led to shareholders settling the debt with the multi-million pound cash injection.
In September, the company launched an “extensive cost-cutting programme” and restructuring, including streamlined operations.
Victoria’s business was also forced to reverse a decision to furlough 30 staff members under the taxpayer-backed scheme.
Sales at the fashion label increased £2.5 million to £38.3 million in 2019, but it continued to lose money and did not pay a dividend. The accounts said: “Directors continue to focus on taking the company to breakeven.”
It added that sales were boosted in the final three months of 2019 by the launch of the Victoria Beckham Beauty brand, while her Dover Street store in London also saw revenue growth.
The accounts added: “Since the year end, the Covid-19 pandemic has impacted trading, with stores carrying the company’s products subject to varying lockdown restrictions.
“This led to a substantial closure of the group’s stores during 2020 (late March to end May, November, late December onwards) and a resulting impact on revenues.”
It noted that the company’s online operations had seen “positive year-on-year growth”, however.