LONDON — Could David Beckham’s Seven Global be the following firm to half methods with the troubled Global Brands Group?
According to a Sky News report, Beckham’s father or mother firm, David Beckham Ventures Ltd., is in talks to take again majority management of Seven Global, a three way partnership with the Hong Kong arm of Global Brands Group.
The buy of GBG’s 51 % stake in Seven Global might price DBVL round $40 million, and business sources advised WWD the cash could be properly spent.
A spokesperson for DBVL declined to remark. A GBG spokesperson mentioned the group and Seven Global “enjoy a long, successful and ongoing relationship, which we look forward to continuing. We fully respect confidentiality with all our business partners, and do not comment on market speculation.”
But business sources near each events say a divorce might be on the horizon, with DBVL eager to take full management of Seven as a part of a wider technique to consolidate the entire David Beckham licenses, manufacturers and partnerships underneath one roof.
The Seven Global portfolio contains Beckham’s offers with Tudor, Coty, Adidas and Biotherm. Until now, DBVL has been managing the partnerships, activations and advertising and marketing instantly, with GBG overseeing the funds.
But the Beckham portfolio is a broad one and Beckham has been eager to take cost of his companies. In 2019, Beckham arrange an unbiased, eponymous model following an amicable separation from former enterprise companions, XIX Entertainment.
According to Companies House within the U.Ok., DBVL notched a revenue of 9 million kilos in 2019 on income of 12.7 million kilos.
More lately, throughout lockdown, he was busy signing offers, together with turning into world ambassador of Maserati.
In addition to the brand new soccer staff Inter Miami CF, and varied model partnerships, Beckham additionally does work for UNICEF by means of the Seven Fund, campaigns for Malaria No More and has served as an envoy of the British Fashion Council. He additionally has media pursuits by means of his movie, content material and branding company referred to as Studio 99.
It seems the time is true for him to maneuver on from GBG, which is struggling — at the very least in North America.
As reported final month, questions proceed to develop regarding GBG’s future. The North American division has issued a warning about persevering with as a going concern, and is trying to dump its manufacturers, based on business sources.
Sources mentioned two of the most important licensed manufacturers, Spyder and Frye, have transitioned again to their proprietor, Authentic Brands Group, and are within the strategy of being reassigned to new licensees.
Sources additionally indicated that GBG in North America might probably look to file for Chapter 11 chapter this yr, and may look to public sale off all of its property.
Global Brands Group was created in 2005 as a division of Li & Fung to handle non-public label manufacturers. It was subsequently spun off and listed on the Hong Kong Stock Exchange in 2014.
Later that yr, it shaped a enterprise with David Beckham to develop Seven Global to handle the Beckham model throughout varied classes. The Beckham enterprise is a part of the Hong Kong firm, which is wholesome, and wouldn’t be a part of any North American chapter submitting.