Victoria’s Secret UK plunges into administration putting 800 jobs and 25 stores at risk
- UK arm of lingerie brand Victoria’s Secret has slipped into administration
- The company has been struggling amid the ongoing coronavirus pandemic
- Now 25 stores are at risk which could result in the losses of over 800 jobs
- Administrators will try to find a buyer for its assets or re-negotiate rents
- Here’s how to help people impacted by Covid-19
The UK arm of lingerie brand Victoria’s Secret has slipped into administration, raising fears for more than 800 employees.
Victoria’s Secret UK runs 25 stores across the UK. It has called in Deloitte for a ‘light touch’ administration, after the company was hit by the closure of high streets during the pandemic.
Victoria’s Secret had already furloughed 785 of its workers before appointing administrators.
Administrators will try to find a buyer for its assets, or re-negotiate its rents, in a bid to pull it out of administration.
The UK arm of lingerie brand Victoria’s Secret has slipped into administration, raising fears for more than 800 employees (pictured: The 2018 Victoria’s Secret Fashion Show in New York City)
The company had already furloughed 785 of its workers before appointing administrators (pictured: A shop in Ho Chi Minh City, Vietnam)
The company had already furloughed 785 of its workers before appointing administrators, and it is now understood that all workers will remain on the job retentions scheme until an outcome is agreed.
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.
‘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.’
The company is renowned globally for working with some of the biggest names in the modelling industry including, previously, the likes of Adriana Lima, Gigi Hadid, Karlie Kloss and Gisele Bundchen.
A-list celebrities such as Kyle Jenner have also worked closely with Victoria’s Secret, taking to the catwalk for the brand in 2018.
The company works with some of the world’s most high profile model (pictured: Stella Maxwell and models Victoria’s Secret Fashion Show, Backstage, Grand Palais, Paris)
The online operators of Victoria’s Secret, which are not owned or operated by the company, are not affected and will continue ahead as normal.
Shoppers are still able to purchase items online, with the delivery process thought to be unhampered by the latest developments.
Recently the company had announced it planned to permanently close 250 stores in the United States and Canada in 2020.
Victoria’s Secret has 849 stores in North America. The majority of these locations, like those in the UK, have remained closed since March after the coronavirus pandemic hit the US.
News of these store closings came just weeks after its parent company, L Brands, confirmed that a deal to sell a majority stake in the company to the private-equity firm Sycamore Partners had fallen through.