Even with attempts of a pre-pack administration deal to try and save them, La Senza is undergoing liquidation.
The company has been undergoing pre pack administration via KPMG since December 2011, which was hoped would help the company out of the financial mire. However, it seems that the company will now by undergoing liquidation after all of the restructuring options were looked at. It seems that administration is the only way that the company will be able to continue and it blames the global financial crisis for its problems. Trading figures have fallen since the 2008 financial problems hit and the group has not been able to continue to pay for rent for its stores on the high street.
Hopes were high in January 2012 that the company would be possibly saved. The pre-pack administration deal saw the Middle Eastern group of retailers Alshaya purchase some of the company’s stores and save 1,100 jobs in the process. However, 84 shops were closed in the process and 18 concessions were shut.
Trading Conditions
Unfortunately for La Senza, this was not enough to save them and trading conditions did not improve significantly enough in the previous 12 months for the stores to remain open. On the 8th of January the lingerie company along with Companies House registered for a voluntary creditors’ liquidation process. On the same date the European part of the group also registered and will also undergo liquidation.
This process of liquidation will see all or part of a company to close and all the assets that belong to it, as well as the property will be sold to try and pay off loans and the debts of creditors. La Senza showed a turnover of over £98.2 million in its most recently registered accounts and of these there were profits of £22.5 million and fixed assets of £9.5 million.
Pre Pack Administration
The company is just one of many who have had to endure pre-pack administration in recent times thanks to the economic problems facing the western world. In a wide range of scenarios pre pack administration companies have saved companies from the worst case scenario.
Finance 7 offers insolvency advice across the UK and has a proven track record in saving UK businesses, whether they are large or small. They have a wide range of experience and all advisors are qualified accountants with a number of year’s experience in the insolvency sector.
