La Senza in administration for the second time
01-Jul-2014The UK chain of the well-known underwear company has fallen into administration again, putting over 750 jobs at risk.
The company fell into administration back in 2011 and was subsequently bought by retail business, Alshaya, and re-named Marnixheath in a pre-pack deal. 1,100 jobs were saved while 1,300 employees were made redundant.
Failing to turnaround the lingerie chain, PwC have now been appointed administrators and will look to find potential buyers for the business while the company continues to trade. There are currently 55 stores (plus offices) across the UK, employing 752 staff.
Joint administrator, Robert Moran, commented, “Like many other retailers, La Senza has been hit hard by the difficult economic environment and a slowdown in consumer spending”.
"There are no immediate plans to close any stores and the administrators shall continue to assess the trading strategy over the coming days and weeks."
Mike Jervis and Stuart Maddison were also appointed joint administrators.
Following in the footsteps of Blockbuster and Internacionale, this is another major retailer facing tough trading conditions caused by low consumer spending. However, in this case, it is just the UK arm of the business in administration. Other stores around the world, including North America, have been unaffected.
A spokesperson for Alshaya, said, “We will work closely with the administrators as they explore their options for the business and if they choose to close all or part of the business, every effort will be made to support staff in finding alternative opportunities for employment.”
UPDATE 16th July 2014: PwC is to close the following six stores:
Moran said, "Regrettably, despite management’s best efforts, it has proven unprofitable to continue to trade these stores, which has resulted in the loss of 75 jobs. The company and the administrators are making every effort to support staff at this difficult time."
If you’re an employee and concerned about the future and what rights you have, please watch out video on employee rights in insolvency: