Model Gigi Hadid at one of Victoria’s Secret catwalks
Further to our online report yesterday (4th June) about a widespread closure of Victoria’s Secret and Bath & Body Stores today see the announcement that Deloitte has been appointed as official administrators for Victoria’s Secret UK in what they are terming a ‘light-touch’ administration. The UK division is part of the global Victoria’s Secret group, owned by US beauty and fashion company L Brands.
The UK business has 25 leasehold sites and employs over 800 people. Most of the staff were on furlough as at the time of the appointment and no redundancies have been announced:
Deloitte said it is currently envisaged that, in order for the business to exit the administration process, “it will be necessary to either restructure the lease terms across the portfolio, and, or, achieve a sale of the company’s assets to a third party”.
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 lock downs, combined with broader challenges facing bricks and mortar retailers, has resulted in a funding requirement for this business, resulting in today’s administration.”
It has been a tortuous few months for the company as a controlling stake in Victoria’s Secret was ready to be sold in a deal in February to New York based private equity group Sycamore Partners. The deal which was valued at approximately $1.1 billion (£848 million) eventually fell through in the first week of May 2020.
