Victoria’s Secret’s UK business enters administration
US lingerie brand Victoria’s Secret has announced that its UK arm has entered administration.
The move has put more than 800 jobs at risk.
The retailer operates 25 stores across the UK, all of which have been closed since the start of the Covid-19 lockdown.
Administrator Deloitte is currently seeking a buyer for the business and has indicated that there will be no redundancies at present. The firm said it will be a “light touch” administration which will enable it to keep on trading.
Rob Harding, joint administrator at Deloitte, said: “This is yet another blow to the UK high street and a further example of the impact the Covid-19 pandemic is having on the entire retail industry.
“The effect of the lockdowns, combined with broader challenges facing bricks and mortar retailers, has resulted in a funding requirement for this business, resulting in today’s administration.”
The administrators will also be seeking reduce Victoria Secret’s high street rents.
Owned by L Brands, the retailer’s UK business made a loss of £170 million in the year to February 2019.
Stuart Burgdoerfer, L Brands’ finance chief and interim chief executive of Victoria’s Secret, said: “We are taking a number of actions across Victoria’s Secret and Victoria’s Secret PINK to strengthen and position the business to succeed as a separate standalone company.”
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