With Valentine’s Day right around the corner, if you’re in the market for new lingerie or sleepwear, retailer La Senza might be on your list of stores to shop. However, it’s been reported by CBC that the lingerie retailer might be in trouble.
The Canadian-founded lingerie chain currently has 340 stores around the world and is reportedly being pushed into bankruptcy because it’s not paying its bills to the company that supplies its garments.
CBC reports that according to court documents, U.S. apparel manufacturer MGF Sourcing is seeking a petition against the owner of La Senza under Chapter 7 of the U.S. bankruptcy code. This petition is used to put companies into liquidation in order to get money back to pay back what’s owed.
Late last year, La Senza was sold to Regent LP, a California-based private equity firm. Part of this deal stipulated that La Senza would secure a letter of credit from its previous owners. This letter would secure payment from suppliers and according to court documents, this never happened.
According to these documents, CBC reports that La Senza owes approximately $42 million for goods that have already been sent to its stores to be sold.
“Despite MGF’s efforts to work in good faith with La Senza to find solutions, La Senza regularly disregarded its obligations and ultimately refused to provide MGF with adequate assurances of future performance,” MGF says in a court filing. “MGF also demanded that La Senza stop selling goods sourced by MGF and return them, but La Senza has not done so.”
Who knows what the future holds for La Senza, but word on the street is that things aren’t looking good.
Articles You May Also Be Interested In:
Bench Is Closing All Of Its Canadian Stores To Focus On E-Commerce
Don’t Let Store Closing Sales Fool You — Here’s How To Spot A Real Deal
Carlton Cards & Papyrus To Close All North American Stores
Why Bankruptcy Doesn’t Always Mean It’s The End For Brands
The Running List Of Retail Store Closures And Bankruptcies In 2020