EXCLUSIVE: Gemma Collins’ clothing firm is £22k in debt and earned just £621 last year – amid star’s three-year ban from directing a company
Gemma Collins clothing company is in £22,534 of debt after her dad Alan was brought in to sort out her spiralling financial problems.
In the latest accounts, the TOWIE star’s attire brand paid just £118 in corporation tax last year, which at 19 per cent, means it made just £621 – despite Gemma regularly promoting fashion items to her 2.1 million Instagram followers.
Last year, Gemma , 40, handed over her finances to her father, who is now the sole director of Gemma Collins Clothing Ltd, after her boutique in Brentwood, Essex, went bust in 2018 – and she was banned from directing a firm for three years.
When contacted by MailOnline, a representative for Gemma said: ‘These figures don’t reflect the current trading. Following substantial invest, the clothing business has been transformed during the pandemic into an international powerhouse.’
Business debt: Gemma Collins clothing company is in £22,534 of debt after her dad Alan was brought in to sort out her spiralling financial problems
Gemma’s store closed down and was liquidated owing £76,000 to creditors, including nearly £65,000 to the HMRC. As a result, Gemma has been forbidden from holding directorship of a company until 2023.
A statement of the boutique’s receipts and payments show that the business owed £64,489 to HM Revenue & Customs, along with £4,734 to Trade and Expense Creditors and £12,982 to Marlton Properties Ltd – the landlord of her boutique.
An investigation launched by the Insolvency Service following the company’s liquidation ruled that it had missed VAT return deadlines.
At the time, Gemma, who reportedly had a net worth of £2.7 million according to Spear’s Wealth Management, claimed she was moving her Brentwood boutique as homelessness in the area had taken away the ‘fun vibe’.
Corporation tax: In the latest accounts, the TOWIE star’s attire brand paid just £118 in corporation tax last year, which at 19 per cent, means it made just £621
Sources, however, told MailOnline: ‘It’s not [Gemma’s] only company… in fact she has record earnings last year and has been inundated with offers for 2019. The accounts reflected investment in business.’
The former TOWIE star is extremely close to her dad Alan, 73, who has been branded ‘the man behind the diva’ and chose him to sort out her businesses.
She admitted that the shipping boss is in charge of her finances, saying: ‘My dad controls all my money. Seriously, I have to ask him if I want to upgrade my car.’
Gemma revealed during an interview on Piers Morgan’s Life Stories that her dad began overseeing her spending after she burned through £50,000 in two months.
Spender: Gemma recently revealed that her dad Alan, 73, began overseeing her spending after she burned through £50,000 in just two months. Pictured with her dad and mother Joan
The self-confessed millionaire said: ‘I’m a spender. My dad rung me up [and said], “It’s an absolute disgrace! You’ve spent £50 grand in two months up Knightsbridge. But the way I looked at it, it’s £1,000 a day over the course of two months.’
She continued: ‘I was going through a bit of a hard time and I felt disgusted in myself. I went absolutely crazy in Gucci. Shoes, bags, coats.
‘I was staying at the Dorchester more or less every night of the week, at £600 a pop. I was wining and dining in there. I got absolutely massive. I could barely walk.
‘It was kind of like self-destruction in a way. And I’m pleased my dad took my card off me, because I’m telling you now, I would have ended up in trouble.’
Relinquishing control: The TOWIE star revealed that her dad Alan is in full control of her finances, and limits her to a spending budget of £3,000 per month
And while Gemma revealed that she once earned £75,000 in paid Instagram posts in a single day, her dad still insists on every penny being accounted for.
She told Piers, 56: ‘I’ll say, “Dad I’m going up London today, can I have £1,000?” He’s like, “Well what do you need now?” I’m like, “Nothing, but I don’t want my card getting declined!” There have been times it’s been declined at Gucci.
‘I get a budget. I get an allowance every month,’ said Gemma, as she specified her limit to be £3,000 per month.
‘If it was down to me, I’d be driving around in Bentley. I’d probably move into the Dorchester. But that is not allowed and it’s not accepted and I’m really pleased. It keeps me grounded.’
Numbers: A spokesperson for Gemma said, ‘These figures don’t reflect the current trading’
In recent months, Gemma has been much more active on the used clothes selling site Depop, which is a favourite for reality stars selling their old designer gear.
TV personality Gemma is flogging her old size 22-30 clothes to fans after shedding an impressive three stone during her recent fitness overhaul.
The former Celebrity Big Brother star notes that people can expect their items within five working days and she does not offer exchanges or refunds.
Most of Gemma’s customers appear pleased with the service as she has received several positive reviews on the site.
Away from the finances of her clothing company, Gemma appears to be doing exceptionally well elsewhere, as it was reported in October that she earned £5,000 a week during the long-running COVID-19 lockdown.
Banned: A probe discovered the star’s store, a fashion boutique in Essex called Gemma Collins Boutique Limited, owed more than £70,000 in tax when it closed down in 2017
Her firm Gemma Collins Limited is said to be worth more than £253,000 with £226,585 of cash in the bank. According to reports, Gemma has also been able to pay herself a dividend of £98,000.
The Sun claimed that the reality star has earned more money in 2020 than her on-off boyfriend James Argent for the first time.
Gemma has had a successful year after reportedly landing a six-figure deal to become the face of budget airline Wizz Air.
Meanwhile, she was also claimed to have earned a £500,000 deal with brand In The Style after the success of her meme clothing.
The reality star also filmed her spin-off series Gemma Collins: Diva On Lockdown during the coronavirus pandemic.
For sale: The former TOWIE star, 40, has become the latest star to sell her unwanted clothes on Depop with hundreds of items including jackets, jeans and dresses up for grabs
Wow: The TV star has recently embarked on a new health regime and regularly updates fans on her progress across social media (left, after a 10 mile walk on Tuesday and right in 2020)
Source: Read Full Article