Next is to take a 51% stake in the Victoria’s Secret UK business, as part of a Joint Venture deal.
The deal will save 500 jobs at the lingerie retailer, which entered administration in June after poor trading in the COVID-19 lockdown.
The newly formed JV will operate all Victoria’s Secret stores in the UK and Ireland, subject to agreeing to terms with landlords. The UK digital (online) business, which is currently operated by Victoria’s Secret in the United States, will be folded into the JV in Spring 2021.
Lord Simon Wolfson, Chief Executive of Next PLC, said: “Next is very pleased at the prospect of working in partnership to expand the Victoria’s Secret brand in the U.K. and Ireland both in stores and online.”
Martin Waters, CEO of L Brands International, said: “We are pleased to take this next step in our profit improvement plan for Victoria’s Secret. Next’s capabilities and experience in the U.K. market are substantial, and our partnership will provide meaningful growth opportunities for the business.”
Rob Harding, Administrator at Deloitte, said: “This is an ideal way to secure the future of more than 500 employees in the U.K. We are grateful to the creditors for working with us to deliver a solution that enables this business to survive and prosper.”