La Senza’s UK operations has been bought by Kuwait’based Alshaya
The UK unit of Kuwait-based retailer Alshaya said on Monday it had reached agreement to buy troubled lingerie chain La Senza out of administration.
Financial details of the transaction to buy 60 of La Senza’s stores were not disclosed but was part of Alshaya’s plans to invest around £100m in the UK retail sector over the next two years, it was reported.
“We are delighted to have reached agreement to buy these La Senza stores – saving jobs, protecting a great brand for consumers and strengthening our UK presence and links,” said Alshaya group chairman Mohammed Alshaya in comments published by media in the UK.
“This is a strategic investment for us and a positive addition to our extensive international retail portfolio,” he added.
It was reported that Alshaya UK Ltd has acquired 60 of La Senza’s UK stores from administrator KPMG in a deal expected to save 1,100 jobs in the UK.
The remaining 84 La Senza stores will close with immediate effect along with 18 concessions resulting in the loss of around 1,300 jobs.
The deal involved what is known as a pre-pack arrangement, under which La Senza briefly went into administration, before being sold. Pre-pack administrations give struggling companies some protection from creditors.
Alshaya runs franchise licences in the Middle East for a number of British retailers including Next, Debenhams and Mothercare.
On December 14, La Senza called in KPMG to mull over a series of restructuring options, including administration.
Just over a week later, La Senza filed notice of its intention to appoint an administrator with Richard Fleming, David Standish and Rob Croxen partners at KPMG being formally appointed earlier on Monday.