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Victoria Beckham, 46, has had to lay off 20 members of staff at her fashion firm due to “really tough times” caused by the coronavirus lockdown. Sales at the star’s business are said to have been impacted badly by the pandemic.
The former Spice Girl’s flagship store in London was also forced to close back in March.
Victoria, who has a combined wealth of £330 million with husband David Beckham, 45, is also reportedly planning to halve the number of yearly fashion collections she releases to cut costs.
The difficult business decision is said to have left the mum-of-four feeling “devastated”.
A source said: “These are really tough times and no one is exempt from the pandemic’s clutches.
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“This business is her pride and joy.
“It has never been about money. She hasn’t even paid herself for the past three years.”
The insider also told The Sun that Victoria is trying her best to keep as many of her staff employed as possible.
A spokesperson for Victoria told the Mirror: “Like so many businesses, a challenging retail landscape coupled with the unforeseen effects of the Coronavirus pandemic, has adversely impacted the Victoria Beckham business.
“As a response, we have built a new strategic vision to streamline and future-proof the brand and, very sadly, have to make a number of redundancies to deliver this.”
Express.co.uk has contacted a representative for Victoria for comment.
It comes after Victoria sparked backlash for using the government scheme to furlough 25 of her staff members.
Following criticism, the businesswoman made a U-turn and reversed her decision.
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A statement from a spokesperson at Victoria Beckham Ltd told Express.co.uk: “Victoria Beckham Ltd has been working hard to protect its people and, while adjusting to the impact of COVID-19 and the government lockdown, our decision to furlough a small number of our staff seemed the most appropriate option in keeping with many other businesses.
“The situation is dynamic, and, with the support of our shareholders, we now believe we can navigate through this crisis without drawing from the government furlough scheme.
“Our application was made in the best interests of trying to protect our staff, and that is still our absolute focus. We are doing everything we can to ensure we can achieve that without using government assistance.”
Ralph Toledano, who is the chairman of Victoria’s business, said sales of its clothing and accessories had stagnated in 2018 after years of growth.
Speaking to The Business of Fashion, he said: “The performance was in line with expectations, so we were not surprised.
“Our goal is to reach profitability as soon as possible.”
The chairman added: “I firmly believe that our destiny is in our hands.
“We have a great talent in Victoria and, if you take that asset with a dream team, we can do it.”
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