Lingerie stores ‘could face closure’

Private equity firm Lion Capital is understood to have spoken to advisers, including turnaround specialist Hilco, about a potential restructuring plan for the 180-store chain, which has stores in Leeds and Sheffield, a Sunday newspaper said.

The company is reported to be weighed down by leases agreed by sister lingerie chain Contessa which merged with La Senza in 2007.

The retail sector has fallen victim to a consumer-spending squeeze, driven by high inflation, lacklustre wage growth and uncertainty around the economy.

Contessa, which was sold to Lion Capital by Dragons’ Den entrepreneur Theo Paphitis five years ago, began trading as part of La Senza after the merger.

It was reported that as many as 66 leases are still registered under the name Contessa with landlords. Lion Capital may be able to place any unwanted leases into Contessa and sell the business on, it was claimed.