The largest retailer to collapse into administration in the
UK is Victoria’s Secret. The firm is
the latest victim of the coronavirus pandemic, the lockdown and fierce
competition from online rivals.
The company has appointed Deloitte as the administrator to renegotiate lease terms in an
attempt to save the business. The Big Four accountancy firm advanced that
several factors have led to the decline of the lingerie retailer. They had to
face the coronavirus outbreak, the lockdown and broader challenges that brick
and mortars have to go through. Indeed, physical stores have been under considerable
strains because of rising costs, increased competition and changing shopping
habits for quite a few years and this lockdown only added to these issues.
The global interim chief executive at the lingerie
retailer advanced that this move is to renegotiate leases or sell the
loss-making division entirely as part of a turnaround plan for the firm. He
said, “We are taking a number of actions across Victoria’s Secret and
Victoria’s Secret PINK to strengthen and position the business to succeed as a
separate stand-alone company. As part of that profit-improvement plan, we are
addressing the operating losses in our 25 U.K. stores”. Meanwhile, outlets in
the US will not be affected by this administration process and those in the UK
can still purchase from its online shopping website.
Victoria’s
Secret UK is trying to deal with its losses
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