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.”
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