La Senza goes into administration, putting jobs at risk

 
Sarah Spickernell
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La Senza has gone into administration (Source: Reuters)

UK lingerie retailer La Senza has gone into administration for the second time in two years, putting 752 jobs at risk.

The event comes after Middle Eastern retail investor Alshaya was unable to revive the business, having acquired it in 2012 as it was going through a pre-pack administration deal. Over 1,300 employees lost their jobs during the first administration period.

In a statement, the investor said that it had done everything possible to turn the company around since then, but that conditions were not good enough.

"Every effort has been made for two and a half years to transform and revitalise the La Senza UK business, but it has continued to experience difficult trading conditions, against the backdrop of a challenging economy and the changing dynamics of the UK retail market,” it said.

"We have, therefore, decided with regret that there is no alternative to administration. We will work closely with the administrators as they explore their options for the business and if they choose to close all or part of the business, every effort will be made to support staff in finding alternative opportunities for employment.”

Assets undergoing administration include 55 La Senza stores and three Pinkberry outlets, and it has called on PricewaterhouseCoopers to help oversee procedures. The professional services firm has said that business will continue as normal while the administrators look for buyers.

Operations outside the UK have not been affected.

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