A Bad Reputation
Victoria Beckham is under scrutiny from the public. Beckham’s reputation is in doubt and she is being questioned by people on the street as to why her namesake brand is using taxpayer’s money to furlough her employees. Is it possible that this wealthy British designer, actress, singer, and philanthropist cannot foot the salary bill?
Who Furlough is For
The UK furlough scheme is a support mechanism for cash-strapped businesses to avoid making employees redundant as a result of the COVID-19 crisis. Culture Secretary Oliver Dowden said companies should only use the taxpayer-funded scheme ‘if they had to.’
She Can Afford It
According to Celebrity Net Worth, Victoria Beckham with her husband David Beckham has a net worth of more than £350 million as of this year. The 80% furlough component, falling on the shoulders of the taxpayer, is approximately £150,000 – peanuts to the designer. That said, she is showing some degree of responsibility by making up the 20% balance totalling £38,000, something that she is not obliged to do.
Losses and Regrets
Beckham’s eponymous fashion brand was launched in September 2008. In the first quarter of 2012, it was predicted to generate annual sales of more than £60 million. The truth of the matter is that since its debut, the Victoria Beckham brand has never seen a profit. The label lost £10.3 million in 2018 alone. On reflection, surely the Victoria Beckham management including Posh Spice, now realise what a regrettable decision has been made for both the brand and her own standing.
Beckham’s Choice
The situation could have been very different. Victoria Beckham may have been lauded had she decided to use £200,000 of her own money and set an example to other wealthy employers. Instead, she chooses to live in self-isolation at a luxury home in the Cotswolds.
