The British unit of Victoria’s Secret owner L Brands Inc. filed for protection from creditors Friday as it grapples with disruption wreaked by the coronavirus pandemic, in a move that could result in the sale of the business, the Wall Street Journal reported. L Brands is invoking a tool in the U.K. called a “light-touch administration” that, like filing for bankruptcy, creates a moratorium on claims for unpaid debts. But unlike in a bankruptcy filing, it allows management to keep running the business with the consent of administrators. The company’s U.K. arm employs over 800 people and operates 25 stores under the Victoria’s Secret and Pink brands, which have been shut for weeks because of the pandemic. The administration process excludes its online business, which will continue to trade.
