SFG loses La Senza licence
Specialty Fashion Group (SFG) is no longer involved with the La Senza lingerie brand, with all 19 Australian La Senza stores to cease trade.
A statement from the company says the brand will exit the licence over the next six months with stores to be either closed or converted to one of SFG’s other apparel brands, which include h Millers, Katies, Crossroads, Autograph, and City Chic.
According to SFG, the seasonal and demographic complexities of the La Senza product being developed for the North American market have not translated and proved challenging in the Australian market.
Inside Retail sources say the decision was made abruptly in the final weeks of December, with store conversions already in planning before the close of 2012.
The online store, www.lasenza.com.au, is expected to continue to trade until mid-2013.
SFG says that there are no penalties for cancelling the licence and the financial impact of La Senza to the Group’s EBITDA result will not be significant, with higher investment returns expected from stores converted to other brands.
SFG operates 900 stores across Australia and New Zealand.
The group had made claims that as a result of its relationship with La Senza’s parent company, which also owns the Victoria’s Secret brand, that it was also likely to introduce Victoria’s Secret to the Australian market, however, this now looks unlikely.