Lingerie retailer Victoria’s Secret UK has fallen into administration, putting 25 stores at risk of shutting permanently.
The business, which has 25 leasehold locations in the UK, has appointed Deloitte as its administrator.
Deloitte has said it will carry out a “light touch” process. Of its 800 employees, 785 were on furlough at the time of the appointment.
For the time being, no stores will close. The administrators said it will now either renegotiate lease terms on its high street stores, or sell the business 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 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.”
The UK arm is owned by US fashion retail group L Brands. The retailer’s online operations, which are not owned or operated by VSUK, will remain unaffected by the administration.
To send feedback, e-mail pui-guan.man@egi.co.uk or tweet @PuiGuanM or @estatesgazette
