Next has agreed a deal that can resurrect Victoria’s Secret UK and save 500 jobs.
The fashion-to-homeware retailer is to take a majority 51% stake in a three way partnership with US-owned Victoria’s Secret after the lingerie agency’s UK arm was positioned in administration in June following weak coronavirus lockdown buying and selling that compelled all non-essential shops to close.
L Brands, the corporate behind Victoria’s Secret, agreed the deal following a bid course of led by directors which attracted curiosity from dozens of events together with M&S.
It was revealed again in July that Next had been granted a interval of exclusivity to safe an settlement – difficult by the truth that cuts to lease payments additionally needed to be secured from Victoria’s Secret landlords.
It had 25 leasehold shops on the time of its collapse and employed 800 individuals.
Under the deal, which is topic to regulatory approval, Next will get the vast majority of Victoria’s Secret’s UK property and, subsequent 12 months, management of its digital enterprise.
For Next, a tie-up would add one of many world’s best-known lingerie retail manufacturers to a set of trend labels which incorporates Abercrombie & Fitch, Boss and Under Armour.
According to analysts, it could additionally allow Next to draw youthful customers who’re drawn to Victoria’s Secret’s PINK underwear and attire model.
Lord Simon Wolfson, its chief govt, stated: “Next is very pleased at the prospect of working in partnership to expand the Victoria’s Secret brand in the UK and Ireland both in stores and online.”