- Angela Gonzalez-Rodriguez |
The singer turned fashion designer is navigating troubled waters with its namesake fashion label, Victoria Beckham, which has been recently dubbed as “unrealisable” and “unfeasible” as a business model.
Neo Investment Partners, a group of financial investors, advanced over the weekend its intention to commit 30 million pounds to Beckham’s eponymous fashion label. However, the investment doesn’t come for free: the investment group has named Victoria Beckham Ltd business model “unrealisable", recommending the designer to cut off much of his work force.
About 60 workers to be made redundant after new investors ordered a root-and-branch review
About 60 workers are to be made redundant after new investors ordered a root-and-branch review of the company, which lost 8.5 million pounds last year, reported over the weekend the online edition of the ‘Daily Mail’.
The news of the layoffs was met with bewilderment and anger by the employees of the label that has its headquarters in Battersea, in the south of London and stores both in the British capital and in Hong Kong, reported Italian journal ‘Il Corriere della Sera’.
A company spokesman confirmed the redundancies stating explaining that “The board of directors focused on the company's return to profitability. The structure has been brought back to its proper size, in line with its financial objectives.”
Victoria Beckham was paid 700,000 pounds by the company last year, despite its concerning financial performance. A source quoted by the ‘Business Standard’ said: "She hasn't handled this well, and the staff are raging. She is blaming the consultants, rather than thinking it is her fault. The fact is, she doesn't know what she is doing and that's why the backers have decided to act. The anger is mounting also because the staff know how much she pays herself."
Photo: Victoria Beckham, Pre-colection Spring/Summer 2018