Belstaff dependent on billionaire owner as it posts £48m loss

British heritage brand Belstaff is dependent on the support of its billionaire owner Sir Jim Ratcliffe, its auditors have warned in its latest accounts.

The business, which was acquired a by Sir Jim's Ineos in 2017, reduced a loss of £62m in 2017 to £48m during 2018. Sales were down by £0.5m to £30.5m after it closed a store in Westfield London, The Daily Telegraph has reported.

Its auditors have warned that Belstaff is reliant on the goodwill of Sir Jim for its future after it was revealed that it had debts of £147m of which £126m is owed to Ineos on an inter-company loan basis.

The company has said that according to its own forecasts it will be able to repay the loan if Ineos agrees to delay the repayment and inject further cash. While Ineos has not obligation to delay the repayment, Belstaff says that it wholly expects that it will do so until the brand's turnaround is complete.

In its notes the accounts filed at Companies House, auditor KPMG says: “Given such financial support is not contractually committed there remains a risk that the company may not be able to access further funds at the time required.

“These events and conditions [...] constitute a material uncertainty that may cast significant doubt on the company’s ability to continue as a going concern.”

Belstaff was founded in Stoke-on-Trent in 1924 and made its name producing motorcycle jackets that went on to be worn by some of the world's best known men from Steve McQueen to Che Guevara. More recent campaigns have featured Ewan McGregor and David Beckham.

Before being acquired by Ineos in a surprise move (the firm's other interests are in petrochemicals) it had been owned by JAB Holdings, the investment vehicle of the German billionaire Reichmann family, since 2011.

Its sale came as the group offloaded all of its fashion interests, including Jimmy Choo to Capri Holdings (then Michael Kors Group), to focus on its beauty and food interests such as Coty and Krispy Kreme.