Covid-19 and a decline in the high street retail sector creates a perfect storm for Victoria’s Secret UK
High profile lingerie retailer Victoria’s Secret UK has gone into administration following an operating loss last year which strained it finances and amid the devastation of closing it 25 stores due to the lock down this year.
Deloitte are now tasked with finding a buyer for all or part of the business and attempting to save some 800 jobs and find the money to pay suppliers who have been queueing up with unpaid invoices.
“It’s another hammer blow for retailing,” said Ian Carrotte of ICSM Credit, “it makes you wonder what will be left by the end of the year. My concern is always for the suppliers as all retailers order huge amounts of stock plus are serviced by everyone from the sign-maker to the window cleaner. When a firm enters administration getting paid becomes even harder so my advice is to insist on favourable payment terms such as cash up front.”
The firm had suffered from a downturn in sales last year as it struggled to update its image as fashions changed. Its 2019 fashion show was cancelled after TV ratings slumped and there was criticism of its sexist style and a lack of diversity.
The administration follows on a long list of retail troubles with the collapse of Cath Kidston, the ongoing problems for Debenhams and the high street brand Laura Ashley experiencing again financial problems.
ICSM Credit
ICSM Credit has more than four decades of experience as a credit intelligence group whose members gain inside information about firms in trouble allowing them to avoid bad debts and rogue traders. To join costs less than a tank of fuel – while at the moment there’s a special free temporary membership offer during the Covid-19 crisis which gives access to free legal letters. ICSM also has an effective debt collecting service which has a global reach – ask for details from Paul.
For details about ICSM Credit call 0844 854 1850 or visit the website www.icsmcredit.com or email Ian at Ian.carrotte@icsmcredit.com on how to subscribe and to join the UK’s credit intelligence network to avoid bad debts and late payers. Follow ICSM Credit on FaceBook, Twitter and YouTube and Ian Carrotte on LinkedIn.
To keep up to date subscribe to the FREE ICSM Credit Newsletter to hear all the latest insolvency news and to see who has gone out of business click on the orange panel on the top left of the home page of the website www.icsmcredit.com or send an email to Ian.carrotte@icsmcredit.com
For details for the work of the journalist Harry Mottram visit www.harrymottram.co.uk