Agent Provocateur – at the brink of administration?

The British high-end lingerie firm Agent Provocateur is said to be bordering administration. Mounting debt and shrinking sales might be the touch of grace for the sassy lingerie brand.

The intimate fashion label, founded by Vivienne Westwood’s son and is popular with celebrities from all over the world, has suffered weak sales in recent years, hit by a slow-down in luxury high street spending.

Private equity firm 3i owns a majority stake in Agent Provocateur and would be reportedly trying to sell the company. In this regard, ‘The Guardian’ informed on Thursday that restructuring firm AlixPartners has now been appointed to lead a sale process.

The UK paper reported that bids for the company were tabled late last week. Among the five or so bidders is thought to be Lion Capital, the former private equity owner of La Senza and American Apparel, and Alteri. Other bidders thought to have made it to the advisers’ shortlist are the specialist turnaround group Endless and French women's fashion brand Etam.

3i looking to get at least 30 million pounds for Agent Provocateur

According to sources close to the matter quoted by ‘The Guardian’, the financial advisers are looking to sell the brand for at least 30 million pounds.

It’s worth highlighting that this is roughly the sum that Agent Provocateur owes to its lenders. Meanwhile, 3i is looking to finalise a deal ahead of a deadline for rent and rate payments which falls around late February or early March.

The company says manufacturing in Britain and Europe has declined over the last decade but it continues to use European laces, fabrics and trims where possible, Reuters reports.

Image:Agent Provocateur S/S17 Collection