Victoria's Secret has entered administration in the UK, putting nearly 800 jobs at risk. The lingerie brand confirmed that it had hired administration Deloitte, after the implications of lockdown caused further financial problems for the ailing label.
Deloitte is currently looking for a buyer to avoid 785 employees from losing their jobs, reports The Independent.
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.”
The news comes just weeks after it was announced that the brand is closing a quarter of its stores across the US and Canada. In early May, a half-a-billion deal to privatise VS fell through. Lockdown has placed greater strain to Victoria's Secret, which was already suffering from a fall in sales and popularity.
The label has come under fire for its one-dimensional view of beauty, now considered outdated and irrelevant. In November 2019, it officially cancelled its famed annual show as bosses claimed to be working on a new marketing strategy.
Victoria's Secret has suffered dwindling sales throughout the past 18 months, coinciding with the rise of Rihanna's inclusive underwear brand Savage by Fenty and American Eagle Outfitter’s Aerie.
The brand's controversies have been numerous. In 2018, then-chief marketing officer Ed Razek came under fire after he said that he would never cast a transgender model in the show. He also insisted the public has "no interest" in the inclusion of plus-size models.
L Brands, the company that owns VS, also attracted negative publicity thanks to founder Les Wexner's friendship with the late US financier and convicted sex offender Jeffrey Epstein. Wexner enlisted Epstein as an advisor, but cut ties with him in 2007.
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