La Senza has entered administration once again.
It is the second time in two years that the Canadian lingerie chain has hit financial difficulties and puts 752 jobs at risk in the UK. The company has 55 franchise outlets across the country and was forced to close over 80 stores when it entered administration for the first time in January 2012. However, administrators stated that there were "no immediate plans to close any stores" at this time.
Robert Moran, from PwC joint administrators, said: "Like many other retailers, La Senza has been hit hard by the difficult economic environment and a slowdown in consumer spending." He added that no staff have been made redundant and will continue to be paid for their work during this period.
It is only the UK branch of La Senza that has entered administration, while the Canadian outlets are unaffected by the situation. The company was recently acquired by Limited Brands Inc., owner of Victoria's Secret, in a deal worth $710 million (£413.9 million). The move opened up the potential for La Senza to move into the US market or for Victoria's Secret to open high-end boutiques in Canada.
The Financial Post reported that Limited is expected to pay $48.25 a share for the Canadian lingerie firm, representing 47.8 per cent premium of the firm's $32.65 share price. La Senza boasts 318 stores across Canada as well as 327 outlets in 34 other countires. The deal is due to be formally announced in early 2015 and will boost La Senza's revenues up to $465 million.
Irv Teitelbaum, La Senza's chief executive, told the news provider: "It's a very exciting business combination and as time goes on we will make decisions jointly regarding such moves. We could go back in the U.S., they could come up here, and there are exciting licensing opportunities."
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