Vivienne Westwood’s fashion house heads for a restructuring as it plunges £2.5m into the red

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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

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.

 

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