Canadian intimate retailer La Senza can face Chapter 7 liquidation proceeding after three suppliers filed an involuntary bankruptcy court petition.
Three biggest vendors, MGF Sourcing US, LLC, Ocean Lanka (Pvt) Ltd. and Teejay Lanka Plc filed the petition charges that La Senza is past due on payment for about US$41.7 million of products already shipped. Three companies submitted the involuntary filing in a bankruptcy court in Delaware Monday. MGF also filed separately in Toronto the same day, looking to La Senza’s Canadian operations declared bankrupt.
The Chapter 7 filing included an affidavit from Daniel Bloch, MGF’s Vice President of Finance. The sale of La Senza included separate agreements in which MGF would source goods for La Senza, and L Brands would guarantee up to $20 million of La Senza orders, Bloch said.
La Senza possesses and operates more than 100 stores in the U.S.A. and Canada, in addition to hundreds of international franchise locations from Cape Town and Riyadh to Kuala Lumpur. The retailer’s cheeky wares and frilly frippery skew toward young millennial women.