Victoria’s Secret goes into administration in UK putting more than 800 jobs and 25 stores at risk – The Sun
VICTORIA'S Secret has tumbled into administration in the UK, putting more than 800 jobs and 25 stores at risk.
The UK arm of the lingerie retailer has struggled during the coronavirus lockdown, it was revealed today.
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It has called in Deloitte for a "light touch" administration, after the company was hit by the forced closure of high streets during the pandemic.
Victoria's Secret had already furloughed 785 of its 800-plus workers before appointing administrators.
Under the government's coronavirus jobs retention scheme they currently get 80 per cent of their salaries covered up to £2,500 a month, although this is set to change from August.
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 brand's website is continuing to trade as normal and won't be affected by the administration as it's not owned by the company's UK arm.
It's global stores outside of the UK are also unaffected.
The Sun has asked Deloitte if staff will continue to be furloughed and if stores will remain closed after lockdown is lifted while a buyer is sought.
Victoria's Secret is famous for its catwalk fashion shows where it's so called "angels", including the likes of superstar models Gigi Hadid and Kendall Jenner, model its latest lingerie lines.
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."
Stuart Burgdoerfer, interim chief executive of Victoria’s Secret said: "We are addressing the operating losses in our 25 UK stores by appointing Deloitte to work with Victoria Secret UK in a “light touch” administration during which it will seek to restructure the UK lease terms, explore options for a sale of that portion of business or other alternatives."
It's the latest below for the high street, which has seen numerous casualties since the start of the coronavirus crisis including fashion brands Oasis and Warehouse.
Under lockdown rules starting on March 23, non-essential retailers, such as clothes shops, have been banned from opening shops.
They've been allowed to trade online in the meantime, although they're allowed to reopen once more from June 15.
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