London (AFP)
The British branch of the lingerie brand Victoria's Secret has declared bankruptcy, which threatens 800 jobs, after having suffered a cessation of its activity because of the pandemic.
The brand is placed under the British bankruptcy regime and Deloitte has been appointed administrator, the latter announced in a press release on Friday.
The brand has 25 stores in the United Kingdom and 800 employees, 785 of whom benefit from the government's partial unemployment scheme.
This bankruptcy does not concern online activities in the United Kingdom since they are not owned by the British branch itself.
In order to distribute the brand in the country, Deloitte plans to either renegotiate the rental contracts of the stores with their owners, and / or find a buyer.
"This is another blow to businesses in the UK and the latest example of the impact of the Covid-19 pandemic on the distribution sector," said Rob Harding of Deloitte.
"The effect of confinements, combined with the broader challenges faced by physical businesses, created a need for financing for this business" and therefore led to its bankruptcy, he explains.
However, the company opted for a loose bankruptcy regime, which allows it to continue its activities while not being under pressure from its creditors.
The pandemic has already precipitated the bankruptcy of the British clothing and home goods chain Laura Ashley or of the department store chain Debenhams.
The American parent company, Victoria's Secret, was not spared the difficulties, after being very popular in the early 2000s.
Faced with financial problems, it announced in May the closure of 250 stores in North America, and warned that more could follow in the next two years.
And because of the pandemic, its owner, the American company L Brands, had previously canceled its sale to the Sycamore Partners fund which had agreed to spend $ 525 million in order to take control (55% of the capital).
© 2020 AFP