Victoria’s Secret goes into administration in the UK leaving more than 800 jobs at risk

Victoria’s Secret is the latest high street chain to fall into administration in the UK, risking more than 800 jobs across 25 stores.

Victoria’s Secret has been struggling throughout the coronvirus lockdown in the UK, it’s been reported today. 

It has called for ‘light touch’ administration after being hit by the forced closure of high street stores during the pandemic.

785 staff working for Victoria’s Secret were already furloughed, a scheme put in place by the government as part of the coronavirus job retention scheme. 

Administrators will try to find a buyer for its assets, or re-negotiate its rents, in a bid to pull it out of administration.

The website will continue to trade as normal and won’t be affected by the administration of the UK arm of the company.

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.

“We will now work with the existing management team and broader stakeholders to assess all options available for the future of the business.

“As administrators we’d like to thank them and all of the employees for their support, at what we appreciate is a difficult time.”

Stuart Burgdoerfer, interim chief executive of Victoria’s Secret said: “We are addressing the operating losses in our 25 UK stores by appointing Deloitte to work with Victoria Secret UK in a “light touch” administration during which it will seek to restructure the UK lease terms, explore options for a sale of that portion of business or other alternatives.”

It is the latest blow to the UK high street as a result of closures in the pandemic. Non-essential retailers will be allowed to reopen from the 15th June.