UK business of Victoria's Secret goes into administration
The UK arm of lingerie retailer Victoria's Secret fell into administration last week, according to administrator Deloitte, which said the high street chain with 25 shops across the United Kingdom was a victim of the economic impact of the COVID-19 pandemic and the broader challenges facing brick-and-mortar retailers. More than 800 jobs are reportedly at risk.
Deloitte said it would be a ‘light touch’ administration—a UK-specific framework that offers a moratorium on claims for unpaid debts and allows management to keep running the business with the consent of administrators—with no immediate redundancies. The company's online operations are unaffected by the administration, it said.
Administrators are expected to try to find another buyer for the company's assets, or re-negotiate rents on stores, according to global newswires.
The Victoria's Secret group, owned by US beauty and fashion company L Brands, has been struggling in the United Kingdom and last year cancelled its once iconic fashion show, launched in the 1990s, due to poor viewing figures.