Belstaff reliant on billionaire owner Sir Jim Ratcliffe after £48m loss

Belstaff Sir Jim Ratcliffe
In 2018, the retailer's sales dropped from £31m to £30.5m after it closed a store in Westfield London
// Belstaff losses mount to £48m
// The retailer now depending on parent company Ineos to survive

Belstaff is reportedly dependent on its billionaire owner Sir Jim Ratcliffe to survive after posting a £48 million loss.

The fashion retailer said it could struggle to operate without the financial support of parent company Ineos, according to its auditor KPMG, The Telegraph reported.

Accounts filed this month with Companies House show Belstaff’s losses narrowed to £48 million during 2018, compared with £62 million a year earlier.


READ MORE: Belstaff opens new London flagship store


In 2018, the retailer’s sales also dropped from £31 million to £30.5 million after it closed a store in Westfield London shopping centre.

The 110-year-old retailer was snapped up by Ineos in 2017 in an unconventional move for Ratcliffe, who has traditionally invested in oil and gas firms.

As of December 31 2018, Belstaff’s debts had climbed to more than £147 million, of which £126 million is owed to Ineos as part of an intercompany loan agreement.

Belstaff reportedly said it will be able to repay its debts and continue to operate with sufficient funds if Ineos agrees to further delay repayment of this loan and inject additional cash into the company.

However, the British retailer is likely to require further financial backing as executives seeks a turnaround plan to grow sales.

Over the last year, Belstaff has expanded, opening concept stores in London’s Regent Street, Spitalfields and Glasgow.

Belstaff said it expects Ineos to continue to delay loan payments until the turnaround is completed.

However, Belstaff’s auditor KPMG warned that Ineos has no contractual obligation to provide further financial assistance.

Click here to sign up to Retail Gazette‘s free daily email newsletter

2 COMMENTS

  1. Quite Simple really , Once buying a Belstaff Jacket it will last for 25 years so a customer is hardly going to require a new one any time soon. Perhaps An Equestrian or Motor Cyclist might renew more often. But for mincing around in Shoreditch or Shopping in Burlington Arcade the garment will last three lifetimes Hence declining sales and cashflow problems. Don’t need to be an actuary to work that out

  2. This stuff is not proper motorbike attire anymore either so a serious rider would not purchase for extensive use.
    Maybe a city rider for mincing round London as a fashion statement…

LEAVE A REPLY

Please enter your comment!
Please enter your name here