Belstaff, Sir Jim Ratcliffe’s leather jacket brand, has racked up a further £18m loss as auditors said the billionaire industrialist would have to keep pumping in more cash to support the company.
The company, which sells leather jackets for as much as £2,125, posted a sales slump of almost 4pc to £57.6m in 2023, latest accounts showed, as the company failed to turn a profit for the sixth consecutive year. It also posted an £18.3m loss last year.
This means Belstaff has not made a profit in any year since its takeover by Sir Jim’s oil and chemicals empire Ineos in 2017.
The latest loss prompted a fresh warning from auditors, who said there were doubts over its future – as the brand remained dependent on additional financial support from its billionaire owner.
Auditors from Grant Thornton said the fact that there was no formal commitment of support from Ineos had created a “material uncertainty” around Belstaff’s ability to continue as a going concern.
However, Belstaff directors said Ineos had indicated that it would keep making funds available and it would also not seek repayment of earlier loans.
Over £300m in loans
The filings showed Belstaff had a £140m loan with Ineos at the end of 2023 which was due within the year. It also had more than £179m worth of other loans which were less immediate.
Belstaff did not reply to requests for comment.
The luxury brand traces its roots back to 1909 when businessman Eli Belovitch opened a shop in Middleton, Staffordshire, which sold reclaimed fabrics and rubber goods. It later specialised in waterproof clothing.
It was snapped up by Sir Jim in 2017, after previous owner JAB Holdings sought to shift its focus more towards food and drink brands. JAB owns companies including Pret a Manger and Krispy Kreme.
At the time, the deal was viewed as an off-centre purchase by Sir Jim, although some suggested it could be part of his plans to expand his passion project car company, Ineos Automotive given Belstaff’s expertise in waxed motorcycle jackets.
Since then, Ineos has been struck by setbacks in its motoring ambitions. Last month, it confirmed its car factory had ground to a halt after financial difficulties at a key supplier.