La Senza set to shut more than half its stores

Published on Monday 2 January 2012 00:00

Lingerie chain La Senza is closing more than half its stores – including several Scottish shops – in the latest blow to the British high street.

The firm, which employs about 2,600 staff at 146 stores and 18 concessions, posted a list of 81 outlets due to shut down on its website, but did not give a timescale on the closures.

Two stores in Edinburgh, plus the firm’s East Kilbride, Inverness and Stirling shops, are among those closing.

La Senza’s UK business, which before Christmas announced plans to enter administration but said it would trade as normal, is a separate franchise of the Canadian-based retail group owned by Limited Brands.

The UK firm was sold to private equity group Lion Capital five years ago by Dragons’ Den entrepreneur Theo Paphitis. It is now working on an emergency restructuring with accountancy firm KPMG.

News of the closures comes as experts predict that more than 30,000 British retail jobs could be lost as a string of high-street names scale back or go under in the face of a prolonged squeeze on consumer spending.

On Thursday, the owner of Hawkin’s Bazaar collapsed into administration, putting nearly 400 jobs at risk, a few days after Ayrshire-based fashion chain, D2 Jeans, also called in administrators. Past Times, the loss-making retro-themed gift chain with more than 100 stores, recently filed an intention to appoint administrators.

Meanwhile, shareholders of Blacks Leisure face being wiped out as KPMG attempts to put together a pre-pack acquisition deal. The move comes after the debt-ridden outdoor chain’s biggest shareholder, Mike Ashley’s Sports Direct, walked away from buy-out talks.

A number of potential bidders signalled their interest in parts of the 300-plus retail chain in the days before Christmas, including Edinburgh Woollen Mill.

Struggling entertainment retailer HMV Group faces selling off its only profitable business, HMV Live, this year. The iconic music chain needs to reduce its borrowings and bolster its finances after a slump in sales and profits for its most recent half year added an extra £12 million to the firm’s debt.

Even comparatively healthy retailers are retrenching. Electronics retailer Dixons, travel agent Thomas Cook, chocolatier Thorntons and fashion conglomerate Arcadia are all planning to close hundreds of UK outlets this year.

Jonathan De Mello, head of retail consultancy CBRE, said the retail sector was effectively in recession, and was likely to shed between 30,000 and 40,000 jobs over the next 18 months.

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Charles Linskaill

Monday, January 2, 2012 at 07:27 PM

Not Bending to the current financial situation Not Enough deals that many can afford, La Senza complete complacency got them into their current situation, It's only La Senza to blame for their downfall.

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іmmigrantwoman

Monday, January 2, 2012 at 03:57 PM

⅘

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Whitelines

Monday, January 2, 2012 at 03:38 PM

over 50%....so so sad...:-(( just remember the silent cheer guys...when you one leg out!

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