La Senza, the £140m-turnover lingerie chain owned by private equity firm Lion Capital, has had to call in the specialists as poor sales push the brand inexorably toward insolvency.
KPMG is now rummaging through La Senza’s knicker drawer, looking for ways to restructure the business. This could mean administration for the smalls seller, or a company voluntary agreement (CVA) to cast off some of its 158 UK stores.
The most pressing issue is the chain’s rent bills, paid quarterly and due this month. Customers just aren’t spending enough to cover La Senza’s vast high street overheads - you’ve got to sell a lot of thongs to cover Oxford Street rent and rates.