Victoria’s Secret UK has sank into administration, becoming the latest high street casualty of the pandemic and putting more than 800 jobs in jeopardy.
Sales have nosedived during the lockdown after the lingerie retailer’s 25 British stores were forced to shutter.
The firm has already furloughed 785 of its workers, who have been further tossed into the lurch as administrators from Deloitte are called in.
Deloitte will try to find a buyer for its assets, or re-negotiate its rents, in a bid to pull it out of administration.
Victoria’s Secret will try to drum up business online to mitigate against the gaping sales vacuum left by the closure of its stores.
Many high street shops have been fighting to stay afloat amid a plummet in profits because of mothballed stores and shoppers’ tighter purse strings.
The US-based clothing company has further been dogged its owner Leslie Wexner’s ties to the late disgraced paedophile Jeffrey Epstein.
The UK arm of lingerie brand Victoria’s Secret has slipped into administration, raising fears for more than 800 employees (pictured: The 2018 Victoria’s Secret Fashion Show in New York City)
The Victoria’s Secret store on the corner of New Bond Street and Brook Street, London, today
The company had already furloughed 785 of its workers before appointing administrators (pictured: A shop in Ho Chi Minh City, Vietnam)
Administrators will try to find a buyer for its assets, or re-negotiate its rents, in a bid to pull it out of administration (pictured: models backstage at Victoria’s Secret 2018 New York show)
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.’
In May private equity vehicle Sycamore Brands pulled out of a 525 million US dollar (£407 million) deal to take a 55 per cent stake in Victoria’s Secret.
Mr Harding added: ‘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.’
Choosing a so-called ‘light touch’ process will allow the business to keep trading, while putting off its debts for the time being.
The company is renowned globally for working with some of the biggest names in the modelling industry including, previously, the likes of Adriana Lima, Gigi Hadid, Karlie Kloss and Gisele Bundchen.
A-list celebrities such as Kyle Jenner have also worked closely with Victoria’s Secret, taking to the catwalk for the brand in 2018.
The company works with some of the world’s most high profile model (pictured: Stella Maxwell and models Victoria’s Secret Fashion Show, Backstage, Grand Palais, Paris)
Brazilian model Lais Ribeiro walks the runway at the 2018 Victoria’s Secret Fashion Show on November 8, 2018 at Pier 94 in New York City
Recently the company had announced it planned to permanently close 250 stores in the United States and Canada in 2020.
Victoria’s Secret has 849 stores in North America. The majority of these locations, like those in the UK, have remained closed since March after the coronavirus pandemic hit the US.
While many have managed to stay afloat by clinging onto government support, several businesses have been forced to call in administrators.
Debenhams, Cath Kidston and Laura Ashley are among the big high street names who have fallen victim to the virus.
But before coronavirus pounded the global economy, L Brands was already facing questions over its billionaire owner’s relationship with Mr Epstein.
A recent Netflix documentary, Jeffrey Epstein: Filthy Rich, pored over their friendship, which it claimed stretched back to 1986.
For two decades Epstein was personal wealth adviser to Wexner and reporedly tried to influence the selection of Victoria’s Secret models.
He also purchased a $10million plane on the company’s behalf, according to the Wall Street Journal.