KPMG drafted in to re-structure La Senza

Accountants KPMG have been called in to advise La Senza on a re-structuring agreement, as UK retailers fight to overcome a season of poor sales on the high street.

The accountancy firm has been appointed to come up with a range of re-structuring options, two of which could include administration or a voluntary agree to close down stores.

Concerns have been raised that almost 2,600 jobs and 158 stores could be at risk, but any job losses have yet to be confirmed by the company, which is officially unavailable for comment.

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Dragon’s Den panellist and Boux Avenue owner Theo Paphitis, who sold the company to Lion Capital in 2006, posted on Twitter: “It was once my baby and I take no comfort.”

Earlier this year, Lion Capital was rumoured to have floated plans to close down a series of underperforming stores in a bid to cut costs and improve performance of the company, which recorded sales of £140 million in its last financial year.

It was reported that up to a quarter of the group’s total number of branches – 66 of which were still registered under the name of former sister lingerie chain Contessa – could close down.

Despite these claims, La Senza went on to open four new outlets in October, in Brighton, Trafford, Huddersfield and Wakefield.

The new stores all benefited from enhanced design features as seen in Westfield, Stratford, adding to the planned concept roll out by the company.

A wave of retailers have recently been forced to re-consider their financial options, after what has – so far – been a season of poor sales for the high street.

Baratts Priceless recently called in administrators after ‘a downturn in trading,’ Blacks Leisure was put up for sale last week and value retailer Peacock is also reportedly considering a number of debt re-structuring options.

Click here to read about Mary Portas’ new plans for the high street, released on December 13.
 

 

 

 

 


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