Alshaya Buys Lion Capital's La Senza Out Of Administration

Retail franchise operator Alshaya said Monday said it had agreed to buy lingerie chain La Senza out of administration, the second U.K. retailer to be rescued in a day.

Alyshaya's deal with KPMG, La Senza's administrator, involves the exclusive franchise rights for the La Senza brand in the U.K. and 60 stores and secures around 1,100 jobs.

Financial details of the transaction weren't disclosed but was part of Alshaya's plans to invest around GBP100 million in the U.K. retail sector over the next two years.

"We are delighted to have reached agreement to buy these La Senza stores--saving jobs, protecting a great brand for consumers and strengthening our UK presence and links," said Mohammed Alshaya, executive chairman of Alshaya Group in Kuwait, where the company was founded.

"This is a strategic investment for us and a positive addition to our extensive international retail portfolio. Today's announcement represents a first step in a long-term commitment to developing the La Senza U.K. business, which we believe has great potential," he added.

Alshaya operates more than 55 international brands in 19 countries, employing over 22,000 people in its 2,000 plus stores. It already works with the owner of La Senza brand in the U.S., Limited Brands Inc. (LTD).

La Senza in the U.K. was owned by Lion Capital which initially invested in the lingerie retailer in 2006.

Earlier Monday sports chain JD Sports Fashion PLC (JD.LN) said it had bought ailing outdoor-clothing specialist Blacks Leisure Group PLC (BSLA.LN) via a prepack administration handled by KPMG.

-By Marietta Cauchi, Dow Jones Newswires; [phone]; [e-mail]