Specialty Fashion Group has announced it will no longer licence for La Senza – a sister brand of Victoria Secret – in Australia over the course of the next six months.
“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,” SFG said in a statement.
The brand has 19 stores across the country and will either be closed or converted for use by one of the group’s other brands including Millers, Katies, Crossroads and City Chic.
Meanwhile, La Senza’s online store will continue to trade during the remainder of the 2013 financial year.
The company will not face any penalties for cancelling the licence and expects this decision to not have a significant impact to the group’s EBITDA result.
“Higher investment returns are expected from the stores that are converted to the Group’s other proprietary brands,” the company said.