Restructuring of La Senza delegated to KPMG

In the world of lingerie retail, the future of La Senza is a topic of much discussion. The Canadian-born brand, founded in 1990, has made a significant mark in the North American market, with 258 stores in Canada and 175 stores in the UK. However, its European operations have faced financial challenges, leading to restructuring efforts.

La Senza's European subsidiary is currently under the control of Lion Capital, a private equity firm that acquired the UK and European subsidiary from entrepreneur Theo Paphitis in 2006. In a bid to save the brand from potential collapse, Lion Capital acquired 100% of La Senza's long-term debt in a deal in 2010.

Despite negotiations between Lion Capital and Limited Brands at the beginning of the year, the acquisition of La Senza's European business by Limited Brands, the parent company of Victoria's Secret, has not yet been finalized. The deal, if completed, would support Limited Brands' entry into the European market, following their successful entry into the UK with Victoria's Secret in 2010.

Meanwhile, KPMG has been commissioned to restructure La Senza's European operations. This move is focused on addressing the brand's financial challenges and exploring options such as asset sales or brand repositioning. It's important to note that the acquisition of La Senza's European business by Limited Brands is not part of these restructuring efforts.

Interestingly, Limited Brands does not have ownership over La Senza in Europe. In Europe, La Senza is controlled by Lion Capital, as they currently own the brand in that region. This contrasts with the North American market, where Limited Brands owns La Senza.

Apart from La Senza, Limited Brands also controls various other brands including Pink, Bath & Body Works, C.O. Bigelow, White Barn Candle Co., and Henri Bendel. The company's first European store of Victoria's Secret, also owned by Limited Brands, is scheduled to open in 2012.

As the negotiations between Lion Capital and Limited Brands continue, the future of La Senza's European operations remains uncertain. However, with the potential involvement of a prominent player like Limited Brands, there's hope that the brand may be able to navigate its financial challenges and continue to serve its European customers.