Belstaff, the luxury leather jacket brand owned by billionaire Sir Jim Ratcliffe, has announced a further loss of £18.3m, raising fresh concerns about its financial sustainability. Auditors warned that the company still relied on ongoing support from its parent, Ineos, to survive.
Despite the jackets selling for up to £2,125, the brand’s sales fell 4% to £57.6m in 2023, marking the sixth consecutive year of losses since it was acquired by Ineos in 2017. So far Belstaff has yet to report an annual profit under Sir Jim’s ownership.
In their report, auditors from Grant Thornton cited significant risks to the viability of the brand, citing the absence of a formal financial commitment from Ineos as a “material uncertainty” regarding Belstaff’s ability to operate as a going concern.
However, Belstaff directors noted that Ineos had informally confirmed ongoing financial support, including not requiring repayment of previous loans. At the end of 2023, Belstaff owed Ineos a £140m loan due during the year, along with £179m of other outstanding loans.
Founded in 1909 in Staffordshire, Belstaff initially produced waterproof clothing and rubber products before evolving into a luxury brand known for its waxed motorcycle jackets. Ineos acquired the company in 2017 after JAB Holdings shifted focus to food and beverage brands such as Pret a Manger and Krispy Kreme.
At the time, the acquisition was seen as a potential complement to Sir Jim’s Ineos Automotive venture, capitalizing on Belstaff’s heritage in motorcycle clothing. However, both Belstaff and Ineos Automotive have faced challenges. Last month, production at Ineos’ car plant was halted due to financial problems at a major supplier.
Belstaff has not yet commented on the latest figures or warnings issued by its auditors.