15th September 2020
Next has oficially signed its joint venture deal for the UK arm of Victoria's Secret. This move saves over 500 jobs.
15th July 2020
Next has agreed an outline deal to take control of the UK arm of lingerie brand, Victoria's Secret. Administrators, Deloitte, say Next are the preferred UK franchise partner.
Though an outline deal has been agreed, the final steps of the future for the retailer depend on its landlords agreeing to restructure its lease terms to reflect the changing market conditions from COVID-19. A source says that Next have signed an exclusivity agreement until the end of September to have a deal finalised.
Sky News report more.
26th June 2020
Sky News learns that Marks & Spencer and Next are battling to take control of the UK arm of Victoria's Secret. They are among the parties of which are interested in becoming Victoria's Secret's parent company's new UK franchise partner.
Industry sources said that any bidder wanting to franchise its UK brand and keep a physical footprint would need restructured rental terms from any ongoing stores.
This comes as a third of its 25 UK Victoria's Secret stores are opening after three months of the coronavirus lockdown - these stores having restructured rent deals with landlords.
5th June 2020
The UK arm of American lingerie brand, Victoria’s Secret has fallen into administration leaving more than 800 jobs at risk. Its 25 UK stores are at risk of not opening again once the government relaxes the measures taken in accordance with Covid-19.
Deloitte have been called in for what is said to be a ‘light touch’ administration, following the hit the company has faced after the unprecedented coronavirus pandemic brought shop closures. Prior the pandemic, the company had already been financially struggling and in May, Sycamore Brands pulled out of a $525 million (£407 million) deal to take a 55 per cent stake in the company.
The appointed administrators will be seeking a buyer for its assets and/or looking to re-negotiate its rents in a bid to save the firm.
Already 785 workers have been furloughed and it is believed they will remain on the job retention scheme until an outcome has been agreed.
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.’’
The online operations of Victoria’s Secret are not affected and continue as normal, leaving shoppers still able to purchase garments online.