Victoria’s Secret arm in the UK joins the list of retailers to go into administration, which has placed more than 800 jobs at risk across the business including 25 shops in the UK which have all been closed since the COVID-19 lockdown commenced in March 2020.
Why has Victoria’s Secret UK fallen into administration?
Appointed administrators Deloitte said that the high street chain was a victim of the economic impact of the coronavirus pandemic, which has been the case with many high street retailers across the country. Victoria’s Secret UK Limited was struggling before the pandemic and had already furloughed about 785 workers in the UK before being appointing administrators.
“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.”Rob Harding from Deloitte
However, some say the chain had already been hit by weaker sales and changing of consumer tastes as according to the most recent filings the UK arm reported a loss of £170 million in the year to February 2019.
What is Victoria’s secret to recovery?
The “light touch” administration has allowed management of Victoria’s Secret UK Limited to keep running the business and now are waiting to find another buyer for its assets or to renegotiate payment of rent for its stores in an action to improve the high street chain’s financial situation. Victoria’s Secrets UK shops will still remain closed for the moment however not permanently. The administration process will also exclude its online business which will continue trading.
Many have questioned whether the brand itself is now outdated with popularity falling significantly in the UK. The famous lingerie company recently came under fire for being “sexist, outdated and lacking diversity” which resulted in poor television ratings and a decrease in sales.
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