Next agrees deal to rescue Victoria’s Secret UK business and 500 jobs
Next has agreed a deal with Victoria’s Secret owner L Brands to rescue its UK business, which is currently in administration, in a move that will save around 500 jobs.
The joint venture will operate all Victoria’s Secret stores in the UK and Ireland, subject to approval from its landlords.
Its UK online business, which is currently operated in the US, will be folded into the partnership in spring next year.
Next will own 51 per cent of the joint venture and Victoria’s Secret will hold a 49 per cent stake.
Next chief executive Lord Simon Wolfson said the company is “very pleased” about the plan to extend the Victoria’s Secret brand in the UK and Ireland.
The lingerie chain fell into administration in June, blaming the impact of the coronavirus pandemic on high street retailers.
In May it called off a £422m sale of a majority stake in the business to private equity firm Sycamore after the Covid-19 crisis sparked a legal battle between the two firms.
L Brands chief executive Martin Waters said: “We are pleased to take this next step in our profit improvement plan for Victoria’s Secret.
“Next’s capabilities and experience in the U.K. market are substantial, and our partnership will provide meaningful growth opportunities for the business.”
Rob Harding, administrator at Deloitte, added: “This is an ideal way to secure the future of more than 500 employees in the U.K. We are grateful to the creditors for working with us to deliver a solution that enables this business to survive and prosper.”