Victoria’s Secret’s UK arm fell into administration – thus becoming yet another retailer to fall prey to coronavirus.
This has now put around 25 of its stores and 800 employees at risk. Here it’s imperative to mention that several of its employees in the UK have already been furloughed and nothing is expected to change in that regard sooner.
There are reports that Deloitte will be new administrator to renegotiate rent deals with landlords so as to help the brand combat the crisis.
Speaking about lockdown’s impact on the lingerie retailer, Rob Harding, Deloitte Administrator, said that the effect of lockdown, along with the other broader challenges of retailers, has resulted in the requirement of funds for this business, which has eventually caused Victoria’s Secret’s UK arm to fall into administration.
More on this, Stuart Burgdoerfer, Interim Chief Executive, shared, “As a part of the profit-improvement plan, we are addressing the operating losses in our 25 UK stores. Deloitte will seek to restructure the UK lease terms and also explore options for a sale of that portion of business or other alternatives.”
This is another calamity to have hit UK’s high street following Laura Ashley, Cath Kidston and Debenhams, which also filed bankruptcy recently. And to add to it, the much known DVF studio also sunk into administration recently.
Victoria’ Secret’s online sales will, however, continue.
The company has over 1,000 company-owned and 18 independently owned stores across the globe.