Expanding like Beckham: Victoria Beckham raises $40 million for her Clothing Line
Former Spice Girl singer turned fashion designer Victoria Beckham has managed to raise $40 million to expand her stores and e-commerce channel.
London based private equity firm NEO Investment Partners is to invest $40 million in cash into the business which is valued at $134 million.
Victoria Beckham raises $40 million for her Clothing Line
The brand Victoria Beckham Limited which was started in 2008, is privately owned by Victoria, her husband David Beckham and agent Simon Fuller. The company prides itself on manufacturing its majority of the clothing in Britain compared to other international clothing brands which outsource their manufacturing to other developing countries.
Victoria is the lead designer for her brand, working from her home base in London but with her frequent travel to United States Offices in New York City.
She said: “NEO is the perfect partner to now accompany us on the next step of our journey,” they understand my vision and my wish for the company to retain its independence, as well as my commitment to continuing to develop the brand with a unique, forward-thinking approach.”
In a statement from the founder/managing partner of NEO, David Belhassen said: “Victoria Beckham … has built a unique, differentiated luxury brand with a strong identity and very high potential. I am delighted to be working with her and her team to reach the brand’s full potential.”
Private equity firm Neo backs several fashion brands, including Parisian contemporary menswear brand, AMI Paris, cult Italian luxury leather goods brand, Valextra, luxury British design brand, Tom Dixon, and contemporary F&B and boutique hotel brand, Experimental Group.
Having shot to fame in the 1990s with the famous girl pop band Spice Girls and being the other half of Britain’s most high-profile celebrity couple, she struggled during her formative years as a fashion designer for not being taken seriously in the fashion industry.
However, Beckham has managed to gain critical acclaim with her line featuring as one of the major highlights on the runway of New York Fashion Week by 2011 as well as her label being named the designer of the year in the UK at British Fashion Awards in the same year.
Reportedly, the global revenue of the brand at the end of 2016 was $46 million and is expected to grow by double-digit from initial sales record of 2017. Her clothing line has been donned on newspapers around the world, with some of her pieces costing up to $2,600.
With recent deals with Minneapolis based Target to design 200 item apparels for women, children, and infants, the brand is surfing on a high wave of success.