Belstaff, the luxury leather jacket brand owned by billionaire Sir Jim Ratcliffe, has reported a further loss of £18.3 million, raising new concerns about its financial sustainability. Auditors have warned that the company remains dependent on continued support from parent company Ineos to survive.
Despite selling jackets for up to £2,125, the brand’s turnover fell 4% to £57.6 million in 2023, the sixth consecutive year of losses since its acquisition by Ineos in 2017. To date, Belstaff has yet to have an annual profit reported under Sir Jim’s property.
In their report, Grant Thornton auditors identified significant risks to the viability of the brand, citing the lack of a formal financial commitment from Ineos as a “material uncertainty” over Belstaff’s ability to operate as a going concern.
However, Belstaff directors indicated that Ineos had informally secured continued financial support, including by not demanding repayment of previous loans. At the end of 2023, Belstaff owed Ineos a £140 million loan due within the year, in addition to £179 million in other outstanding loans.
Founded in 1909 in Staffordshire, Belstaff initially produced waterproof clothing and rubber goods before growing into a luxury brand known for its waxed motorcycle jackets. Ineos acquired the company in 2017 after JAB Holdings shifted focus to food and drink brands such as Pret a Manger and Krispy Kreme.
At the time, the acquisition was seen as a potential addition to Sir Jim’s Ineos Automotive business, capitalizing on Belstaff’s heritage in motorcycle clothing. However, both Belstaff and Ineos Automotive have faced challenges. Last month, production at the Ineos car factory came to a standstill due to financial problems at an important supplier.
Belstaff has not yet commented on the latest figures or the warnings from its accountants.