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The future of Sir Jim Ratcliffe’s Belstaff has been thrown into doubt after the British leather jacket brand was hit by widening losses.
Belstaff said in its latest accounts that there is a “material uncertainty” around its ability to continue as a going concern, particularly if its billionaire owner stops providing “financial support”.
Sir Jim, who recently acquired a 25pc stake in Manchester United, owns Belstaff as part of his sprawling business empire, which is built upon chemical giant Ineos.
In recent years, the retailer’s struggles have forced Sir Jim, Britain’s second-richest man with a reported fortune of almost £30bn, to provide funding as it pursues a turnaround plan.
However, losses in the last financial year grew to £28.9m, compared to £16.6m the previous year. This was after posting revenues of £59.8m in the 12 months to December 2022.
Auditors for the luxury brand, which was bought by Sir Jim in 2017, said there was a risk that the business could run out of cash because the owner had made no formal commitment to keep supporting the business.
The company said it was dependent on Sir Jim’s Ineos “not seeking repayments of the amounts currently due to the company and providing additional financial support whilst directors of the company turnaround the business”.
Intercompany loans for the last financial year amounted to more than £150m, Belstaff’s accounts said, which also revealed that the company’s “liabilities exceeded its total assets by £252m”.
The brand’s accounts noted that operating losses grew 9.7m to £14.3m because of exchange rate movements and the revaluation of intercompany loans.
Belstaff was founded in 1924 in Stoke-on-Trent, Staffordshire, by Eli Belovitch and his son-in-law Harry Grosberg.
Celebrities such as Hollywood’s Steve McQueen have sported the waxed cotton biker jackets, which have also been promoted by David Beckham and actor James Norton.
Belstaff was contacted for comment.
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