The UK arm of Victoria’s Secret went into administration on Friday, putting more than 800 jobs at risk.
Stuart Burgdoerfer, CEO, Victoria’s Secret’s said in a statement that the company had appointed Deloitte to work with Victoria’s Secret UK in a “light touch” administration deal in which they will “seek to restructure the UK lease terms, explore options for a sale of that portion of the business, or other alternatives.”
Victoria’s Secret stressed that this would not have an impact on any of its other stores around the world and that the UK’s online store would continue to operate as normal.
“We continue to be energized and intensely focused on turning the Victoria’s Secret business around,” Burgdoerfer said.
Victoria’s Secret’s global interim chief executive said in a statement that the aim was to renegotiate leases or sell the loss-making division entirely as part of a turnaround plan for the lingerie retailer.
“We are taking a number of actions across Victoria’s Secret and Victoria’s Secret PINK to strengthen and position the business to succeed as a separate stand-alone company. As part of that profit-improvement plan, we are addressing the operating losses in our 25 U.K. stores,” said Burgdoerfer.
All of the Victoria’s Secret stores in the U.K. are now closed with 785 employees on furlough. The administration will not include L Brands operations outside the U.K., Burgdoerfer said.