Vivienne Westwood’s fashion house heads for a restructuring as it plunges £2.5m into the red
- Parts of the business could be sold off under a ‘strategic review’
- New accounts show that Westwood’s firm slipped to a loss in 2018
- Turnover fell almost 5% to £38m and the company closed two stores
Dame Vivienne Westwood’s eponymous fashion house is heading for a restructuring after it plunged £2.5million into the red.
The company produces four clothing lines plus other ranges including jewellery and homeware. But parts of the business could be sold off under a ‘strategic review’ as it battles tough trading conditions.
New accounts show that Westwood’s firm slipped to a loss in 2018 after a £1.9million profit the previous year. Turnover fell almost 5 per cent to £38million and the company closed two stores.
Actress Pamela Anderson, left, and designer Vivienne Westwood pose for photographers prior to the Vivienne Westwood Ready To Wear Spring-Summer 2020 collection
The firm said: ‘We are reviewing the lines currently available with the objective of streamlining the portfolio. The company is also undergoing a strategic review to create a new operating structure.’
Westwood’s husband Andreas Kronthaler took the reins at the label in 2016 to allow her to focus on political campaigning.
The 78-year-old designer, who defined the look of the punk era, is a Green Party supporter and climate change activist who urges people to ‘buy less and buy better quality items’.
She was accused of hypocrisy after it emerged her UK-based firm paid up to £2million a year to a subsidiary in Luxembourg to license her name, an arrangement similar to the tax scheme used by coffee chain Starbucks.
She said at the time: ‘I am subject to UK tax on all of my income.’
A spokesman for Dame Vivienne was not available.