Restructuring of La Senza's business operations handed to KPMG
In the world of retail, changes are afoot as Lion Capital, a private equity firm, moves to restructure La Senza, a European lingerie company it currently owns. The aim is to improve La Senza's financial position.
La Senza, founded in Canada in 1990, has been under Lion Capital's wing since 2006, when it was acquired from entrepreneur Theo Paphitis. Over the years, the company has expanded its footprint in the UK, with 175 stores, and in Canada, where it boasts 258 stores. However, recent times have seen La Senza grappling with financial challenges.
To address these issues, Lion Capital has hired KPMG to help restructure the company. This move comes as the company explores options such as the sale of assets or a brand repositioning.
Interestingly, news of Limited Brands' entry into the European market has been circulating. Limited Brands, a US-based retail giant that controls brands like Pink, Bath & Body Works, C.O. Bigelow, White Barn Candle Co., and Henri Bendel, among others, has been in negotiations with Lion Capital for the acquisition of La Senza's European business.
This potential acquisition would support Limited Brands' entry into the European market, following their announcement in 2010 of their entry into the UK market with Victoria's Secret. The first European store of Victoria's Secret is scheduled to open in 2012.
However, the name of the company currently in negotiations with Lion Capital remains undisclosed.
In the North American market, La Senza is already under the control of Limited Brands. In 2010, Lion Capital stepped in to save La Senza from potential bankruptcy with a deal that saw the firm acquire 100% of La Senza's long-term debt.
This move not only secured La Senza's future but also positioned Lion Capital as a key player in the European lingerie market. As the restructuring process unfolds, the retail industry will be watching closely to see how these developments shape the future of La Senza.
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