Next, the high street fashion giant, has teamed up with the global brand behind Victoria鈥檚 Secret to keep the troubled lingerie business operating in the 海角视频.
L Brands said that 鈥 subject to regulatory clearance 鈥 the deal between Next and Victoria鈥檚 Secret 海角视频 would create a new company to run the 海角视频 and Ireland side of the lingerie business.
The deal will safeguard the jobs of more than 500 of the 800 people that were working for Victoria鈥檚 Secret when the administrators were brought in.
Back in July Next Plc was chosen as the preferred franchise partner for the 海角视频 arm of Victoria鈥檚 Secret, after it went into administration a month earlier.
Next fought off competition from 30 companies, including Marks and Spencer, to try and bag the lingerie brand, believed to be the biggest lingerie retailer in the world.
Administrator Deloitte was brought in to find a buyer as the chain was hit by a combination of the pandemic, changing consumer tastes and weakened spending.
The 海角视频 arm made an operating loss of 拢170 million in the year to February 2019.
Business-Live understands the administrators liked Next鈥檚 depth of experience in working with other brands. It already has established links with people such as Joules, River Island and Superdry.
It is also understood that Next鈥檚 e-commerce/online and fulfilment skills stood out as did its experience managing its stores.
Despite itself suffering from a loss what could be more than 拢1 billion in sales due to the lockdown, Next, which is headquartered in Leicestershire, has been able to adapt to the huge upheaval of recent months.
The newly formed joint venture will operate all Victoria鈥檚 Secret stores in the 海角视频 and Ireland, subject to agreeing to terms with landlords.
Victoria鈥檚 Secret鈥檚 online business in the 海角视频 鈥 currently operated from the United States 鈥 will be folded into the joint venture next spring.
Under the terms of the agreement, Next will own 51 percent of the new parent company, while Victoria鈥檚 Secret will own the other 49 percent.
Martin Waters, chief executive of L Brands International said: 鈥淲e are pleased to take this next step in our profit improvement plan for Victoria鈥檚 Secret.
鈥淣ext鈥檚 capabilities and experience in the 海角视频 market are substantial, and our partnership will provide meaningful growth opportunities for the business.鈥
Next chief executive Simon Wolfson said: 鈥淣ext is very pleased at the prospect of working in partnership to expand the Victoria鈥檚 Secret brand in the 海角视频 and Ireland both in stores and online.鈥
Rob Harding, administrator at Deloitte, said 鈥淭his is an ideal way to secure the future of more than 500 employees in the 海角视频.
鈥淲e are grateful to the creditors for working with us to deliver a solution that enables this business to survive and prosper.鈥
L Brands operates 2,709 stores in the United States, Canada, the United Kingdom and China, and its brands are also sold in more than 700 franchised locations worldwide.
Next is the 海角视频鈥檚 number one online clothing retailer and is listed on the FTSE 100.
It has more than 500 stores in the 海角视频 and an online presence in more 70 countries selling the Next brand and 700 other fashion, home and beauty brands.
By partnering with Next, Victoria鈥檚 Secret gains access to a digital and delivery capability that is regarded by analysts as the most sophisticated in 海角视频 retailing.
