Victoria’s Secret goes into administration
The brand, which made an operating loss of £170 million last year, will continue to be run by current management on a day-to-day basis while administrators look to find either a buyer for the whole company or the individual assets.
One element would be to negotiate rent reductions or holidays with landlords which would cut outgoings immediately.
Over 800 employees work for the company although the vast majority of them had been furloughed since March when the stores closed in line with government regulations.
The business continues to operate its online operations and it’s just the UK stores that are affected.
In the 1990s and early 2000s, Victoria’s Secret was a popular and cultural phenomenon. The annual fashion show was launched in 1995 featuring supermodels wearing outrageous costumes and creations. It was screened live on international TV to massive initial audiences but these ultimately dwindled and the 2018 edition saw the lowest figures ever.
In fashion circles it was widely acknowledged that the brand was already struggling to hold its own against new disrupters aimed at millennials and their changing tastes and celebrity-launched ranges by stars such as Rhianna with her Savage X Fenty line which is aimed at specific body types.
Qing Wang, professor of marketing at Warwick Business School said: “If Victoria’s Secret is to be saved, it needs a new start and a major overhaul of its brand and marketing strategy.
“It needs to be brought up to date to reflect the values of gender equality, sustainability and diversity that appeals to today’s shoppers and compete with the brands that have overtaken it.
“It has not kept pace with the strong values of millennials and post-millennials, who should now be the company’s target customers,” she added.
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