// Victoria’s Secret UK arm collapses into administration
// The lingerie retailer has hired Deloitte advisers
// Over 800 jobs are at risk
Victoria’s Secret has announced that its UK division has fallen into administration, putting over 800 jobs at risk.
The US lingerie retailer, which has furloughed 785 employees, has 25 stores in the UK and confirmed on Friday that it has drafted in Deloitte advisers to assess the impact of Covid-19 on business.
The insolvency firm said it will conduct a “light touch” administration as it seeks to find a potential buyer.
READ MORE:
- Victoria’s Secret UK stores at risk as it shutters 250 US stores
- Victoria’s Secret owner L Brands calls off £407m deal
“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,” Deloitte joint administrator Rob Harding said.
“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.
“We will now work with the existing management team and broader stakeholders to assess all options available for the future of the business.
“As administrators we’d like to thank them and all of the employees for their support, at what we appreciate is a difficult time.”
Last month, Victoria’s Secret announced it will permanently close a quarter of its stores in North America over the next few months, after its half-billion dollar plan to go private collapsed.
Its parent company L Brands said it would close 250 branches and more may follow.
L Brands chief financial officer Stuart Burgdoerfer said the closures were a “very significant decision” but designed to “strengthen” Victoria’s Secret.
Victoria’s Secret was struggling prior to the coronavirus pandemic, but suffered a further blow when in May, L Brands called off a deal with private equity firm Sycamore Partners to take the retailer private.
It came just three months after it had reached a $525 million (£407 million) agreement.
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