La Senza mulls shop closures
Monday 29 August 2011
The private equity owner of the troubled lingerie retailer La Senza has floated plans to close a number of under-performing shops in a bid to turn around its performance and slash costs.
Lion Capital has sounded out some retail restructuring companies, which could include Hilco, about its proposals.
A key focus of Lion Capital's plans is the ownership structure of Contessa, the sister lingerie chain that Lion acquired from Theo Paphitis, one of the judges on the BBC's Dragons' Den, in October 2006. It converted the Contessa stores to, and trades them as, La Senza, but it is understood that 66 shops are still registered with landlords under the Contessa name.
This could give Lion the option to put any unwanted leases into Contessa and sell or close them, at a time of dreadful trading on the high street. Up to a quarter of the lingerie group's 180 branches could be offloaded.
Lion Capital bought La Senza in 2004 but in the financial year to March 2010 the retailer breached certain banking covenants.
However, Lion moved to tackle its financial woes by acquiring 100 per cent of the debt in the lingerie chain in January 2010. Lion declined to comment last night.
- 1 Autistic teenager beaten up by bullies makes them watch 20-minute video about autism
- 3 World learns of app that shows you who unfriended you on Facebook, app promptly crashes
- 4 Chris Moyles reportedly set to make radio comeback with new breakfast show on XFM
- 5 The Greece debt crisis explained in less than 100 words
Florida man sentenced to two-and-a-half years for having sex on the beach in front of a child
Autistic teenager beaten up by bullies makes them watch 20-minute video about autism
Tube strike July 2015: Is it still on? Everything you need to know about the industrial action
Eiji Tsuburaya: Godzilla co-creator honoured in today's interactive Google Doodle
Florida teacher sentenced to 22 years in prison for sexually abusing three pupils
More Britons believe that multiculturalism makes the country worse - not better, says poll
Osborne to cap family benefits at £23,000 – announced ahead of his post-election Budget
Nathan Collier: Montana man inspired by same-sex marriage ruling requests right to wed two wives
Forget little green men – aliens will look like humans, says Cambridge University evolution expert
Girl, 7, stares down hate preacher at Ohio festival with pro-LGBT rainbow flag gesture
Sickness and disability benefits could be reduced by £30 a week as part of £12bn welfare cuts
iJobs Money & Business
£40000 - £95000 per annum: Recruitment Genius: This is an exciting opportunity...
competitive: SThree: Are you passionate about sales?Do you have a keen interes...
£17000 - £30000 per annum: Recruitment Genius: This is an exciting opportunity...
£15000 - £17000 per annum: Recruitment Genius: This company offers a range of ...