Suppliers seek to put La Senza retail chain into bankruptcy
La Senza, the Canadian brand that L Brands sold to a private equity firm last year, is facing an uncertain future.
MGF Sourcing US, an apparel and footwear manufacturer, and two other third-party creditors have filed a Chapter 7 involuntary bankruptcy petition in Delaware against the lingerie brand. The suit contends that La Senza has not paid its debts during the past year, which amount to an estimated $42 million for goods that have been shipped.
If the Chapter 7 petition is approved, it would put the company into liquidation.
L Brands, the parent company of Victoria’s Secret, agreed to sell La Senza to an affiliate of private equity firm Regent LP at the end of 2018. At that time, there were some 126 La Senza company-owned stores in the U.S. and Canada. According to the company’s website, there are more than 340 La Senza stores around the world.