The European branch of Canadian lingerie chain La Senza is underperforming and needs to cut its costs, otherwise its owner Lion Capital might close a number of stores. Private equity firm Lion Capital has owned the European branch since its split off the Canadian parent company in 2006.
Problems for the group started just one year later, as La Senza UK merged with Contessa, a lingerie group owned by member of the Dragon’s den jury Theo Paphitis. All the Contessa stores and articles were rebranded to La Senza, but several of Contessa’s leases weighed heavily on the La Senza company. High inflation and low consumer confidence further compromised the company’s financial situation.
Lion Capital already spoke to restructuring company Hilco in order to rehabilitate the lingerie group. Up to a quarter of the 180 La Senza stores face possible closure, while it is also possible that Hilco groups the worst-performing stores in the “Contessa” vehicle and sell that business on.
There are no La Senza stores in Belgium, but the Dutch chain V&D has a few La Senza shop-in-shops in the Netherlands.
