What A Mess! Will Other Stores In The UK Be Bankrupt?

The secret of Vitoria, a famous underwear brand, has been a lot of worries lately. In June 9th, the British branch was officially entered bankruptcy process, and more than 800 jobs in Britain were also in danger. The L Brands Inc. subsidiary is facing unprecedented crisis after 43 years of scenery.

Prior to that, Giselle was known as the originator of the "sexy economy". There are 25 stores in the UK, especially the "EMI show" and "A Supermodel of angels" can become a hot topic every year: the supermodels of Giselle, bang Chen, Miranda and Kerr are familiar with each other. It can be said that in the past half century, the secret of Vitoria has built a "sexy Empire". Now the era of the gods is far away, and the secret is at stake. 25 stores in the UK are closed with the global storm.

In fact, as early as February this year, PE Private Equity Investment Firm giant Sycamore Partners announced that it would buy Vitoria's Secret 55% stake at a low price. However, the price of the transaction, which was only $1 billion 100 million, was suddenly broken by Sycamore Partners and it pushed the company to the brink of bankruptcy.

Where does the British government go after bankruptcy and liquidation?

Commissioned by DDT accounting firm said: after the secret will seek to manage the Department's reform, adjust the terms of the lease, renegotiate the lease agreement, and look for other potential buyers.

The impact of bankruptcy and liquidation on other stores in the UK?

Over the past few months, the closure of many of the other shops in the many other places has indeed played a more important role in the weakening of the brand's financial position. But for now, the bankruptcy of the British company will not affect any other stores.

On the other hand, the United States stores in Vitoria also remain unsettled, according to Bloomberg news. In June 8th, the secret of the underwear brand of the United States and its parent company L Brands sued its landlord in the flagship store of pioneer Plaza in New York, saying that due to the impact of the epidemic, it could not afford the high rent cost of the SL Green Real Estate Company, the largest office owner in New York.

It is understood that the store is located in the golden section, near the central city of Manhattan Messi department store flagship store, the monthly rent is about $1 million. This makes it impossible for them to accept. Despite the huge flow of people, the outbreak of the epidemic caused great damage to the retail industry, and the stores were forced to suspend business. Consumers did not dare to go out, and the recovery process was slow. Therefore, they asked the court to lift the lease of its Pioneer Square flagship store.

In response, SL Green Real Estate Company said that it could not agree with the fact that it was a big business and refused to implement the contract.

It has been reported that the company will be separated from the L Brands parent company and operate independently, and we will continue to follow you later.