Richard Fleming, David Standish and Rob Croxen, restructuring partners at KPMG, were today appointed joint administrators to La Senza UK. Following their appointment they completed an agreement to sell part of the business to Alshaya UK Limited, part of the Alshaya group of companies, a leading international retail franchise operator based in Kuwait. Alshaya have acquired 60 of La Senza UK’s stores, securing around 1,100 jobs in the UK.
La Senza UK confirmed that it was commencing a programme of 81 store closures on Friday 30th December. These stores do not form part of the sale to Alshaya, and have ceased trading with immediate effect. The administrators have also announced the closure of a further 3 stores and 18 concessions. The closure of 84 stores and 18 concessions has unfortunately resulted in approximately 1,300 job losses. Around 15 members of staff have been retained by KPMG to assist the administrators.
Richard Fleming, Joint Administrator and UK Head of Restructuring at KPMG, commented: “We are delighted that we have been able to rescue part of La Senza UK and such a large number of jobs, given the negative economic pressures faced by retailers in the UK. Alshaya is a leading international retail operator with long standing links with the UK as the international franchise partner of a string of high street brands. This deal recognises the value of La Senza as a strong and popular high street brand with a loyal customer base.”
Mohammed Alshaya, Executive Chairman of Alshaya Group in Kuwait, said: "We are delighted to have reached agreement to buy these La Senza stores - saving jobs, protecting a great brand for consumers and strengthening our UK presence and links. This is a strategic investment for us and a positive addition to our extensive international retail portfolio. This is the first step in a long-term commitment to developing the La Senza UK business, which we believe has great potential."
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For further information on the administration, please contact:
Emma Murray PR Manager, KPMG
T: 020 7694 6506
Sorrelle Cooper PR Senior Manager, KPMG
T: 020 7694 8527
Zoe Sheppard PR Manager, KPMG
T: 0117 9054337
For further information on the acquisition, please contact Alshaya’s PR representatives:
T: 0207 353 4200
T: 020 7353 4200
KPMG Press Office: 020 7694 8773
KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and operates from 22 offices across the UK with over 11,000 partners and staff. The UK firm recorded a turnover of £1.7 billion in the year ended September 2011. KPMG is a global network of professional firms providing Audit, Tax, and Advisory services. We operate in 150 countries and have 138,000 professionals working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. KPMG International provides no client services.
M.H. Alshaya Co., is a leading international retail franchise operator for over 55 of the world’s most recognised retail brands. Diversified across seven retail sectors - fashion and footwear, health and beauty, food service, optics, pharmacy, office supplies and home furnishings - the company operates over 2,000 stores in 19 countries across the Middle East and North Africa, Russia, Turkey and Europe, employing more than 22,000 people from over 80 different nationalities.
Alshaya operates in markets where scale, infrastructure, demographics and emerging trends combine to create strong demand for high quality, organised retail. Brands currently managed and operated by Alshaya include Mothercare, Debenhams, River Island, Next, Topshop, The Body Shop, Vision Express, Boots, H&M, Starbucks, Victoria’s Secret, Bath & Body Works, La Senza, American Eagle Outfitters, Pottery Barn, P.F. Chang’s, Dean & Deluca and Office Depot.
M.H. Alshaya Co. is the retail business of the Alshaya group of companies, which was founded in Kuwait in 1890 and today represents one of the most dynamic companies in the Middle East and increasingly internationally. In addition to its retail operations, the Alshaya Group is active in a number of other sectors including real estate, automotive, hotels, trading and investments. Learn more about the company at www.alshaya.com.
This article represents the views of the author only, and does not necessarily represent the views or professional advice of KPMG in the UK.