La Senza is going into administration. It has blamed very difficult trading conditions in 2011.
It employes 2600 people in the UK and has 146 shops. La Senza is working with its accountants (KPMG) and seeking a suitable administrator.
Theo Paphitis, now more famous for Dragons Den, was a director of the company in 2006. It was a very profitable company. Theo explained to the BBC that La Senza was profitable up until 2010. But recently a combination of the decline of the high street, increase in supermarket clothing lines and out of town shopping centres, plus of course the Internet, has drastically cut sales in the last year.
Theo Paphitis sold his shares of La Senza in 2006 for £100m.
Theo’s catchphrase is “There are three reasons to be in business. To make money, to have fun – and to make money.” La Senza is not making enough money now, so it is time to hang up its tape measures and close its doors.