Belstaff relies on Sir Jim Ratcliffe to stay afloat despite mounting losses

Sir Jim recently added a 25% stake in Manchester United to his vast business empire. Photo: DIRK WAEM/AFP

Sir Jim Ratcliffe will need to pump more money into Belstaff after the British leather jacket brand suffered mounting losses.

In its latest accounts, Belstaff said there was «significant uncertainty» about its ability to continue as a going concern as it emerged its billionaire owner must provide further «financial support» to keep it afloat. < /p>

Sir Jim, who recently acquired a 25% stake in Manchester United, owns Belstaff as part of his vast business empire built on chemicals giant Ineos.

The retailer's struggles have forced Sir Jim to become Britain's second richest man in recent years with a wealth of almost £30 billion, provide funding to implement the turnaround plan.

However, losses in the latest financial year rose to £28.9 million, compared with £16.6 million in the previous year. It comes after revenue of £59.8m was reported for the 12 months to December 2022.

Celebrities including James Norton promoted the Belstaff film. waxed cotton biker jackets

Auditors for the luxury brand, which was bought by Sir Jim in 2017, said the business needed cash but warned there was no formal financing agreement between Belstaff and its owner.

The company said it was dependent on Sir Jim's Ineos «not seeking repayment of amounts currently owed to the company and not providing additional financial support while the company's directors rebuild the business.»

Intercompany borrowings totaled more than £150 million in the last financial year, Belstaff said in its accounts, which also showed that the company's «liabilities exceeded its total assets by £252 million.»

p>The brand's accounts note that operating losses rose from £9.7 million to £14.3 million due to exchange rate fluctuations and the revaluation of intercompany loans.

Belstaff was founded in 1924 in Stoke-on-Trent, Staffordshire, Eli Belovich and his son-in-law Harry Grosberg.

Celebrities such as Hollywood's Steve McQueen wore waxed cotton biker jackets, which were also endorsed by David Beckham and actor James Norton.< /p>

Belstaff has been contacted for comment.