Theo Paphitis is in urgent talks to save his national chain of lingerie shops, Boux Avenue.
The former Dragon’s Den judge, 60, said that the brand had faced tough trading conditions and believes that his retail outlets are paying too much rent in shopping centres.
The retail mogul has personally taken control of negotiations in a bid to slash rent prices and save the celeb favourite lingerie brand.
The business man, who also owns Robert Dyas and Ryman, explained in his annual trading statement that the brand’s demographic now typically shops online.
His other two chains also performed considerably better in the annual figures.
“As a greater proportion of fashion sales migrate online in the UK, it’s clear that the relevance of shopping centres to fashion retailing...is dramatically different” Theo explained.
Boux Avenue is available in 30 retail locations across the country and is a staple brand for a number of reality stars and celebrities.
The fashion brand specialises on lingerie but also sells nightwear, lounge wear and accessories.
In December 2019, Megan McKenna was named the new face of the lingerie brand after winning X-Factor: Celebrity.
TOWIE girls Lauren Goodger and Lucy Mecklenburgh have also frequently posted seductive pictures on Instagram wearing the underwear.
Theo Paphitis expressed concern in the annual statement, but failed to reveal whether the business overhaul could lead to store closures.
The statement read: “Boux’s online sales performance during the Christmas period tells its own story, accounting for almost 50% of total retail sales.
"As a greater proportion of fashion sales migrate online in the UK, it’s clear that the relevance of shopping centres to fashion retailing – and particularly Boux’s core demographic of 18-30 year old females – is dramatically different from what it was when we launched the business in 2011.
“It is not a surprise, therefore, that trading has been most challenging in the majority of our 30 Boux Avenue shopping centre stores, which has contributed towards a double-digit decline in LFL sales in recent months.
“The significant costs of marketing your brand to customers in these locations no longer makes sense, and one of the most significant factors we must address is the rents we are paying across our shopping centre destinations.
“Boux is still paying significantly above average market rents whilst competitors and co-occupiers have been able to completely realign their rental cost base, often through CVAs,” he said.
“This does not tally with the overall experience we have had with our other businesses located on the high street where we have made some progress in renegotiating rents back towards the market average following constructive discussions with a number of landlords.”
“We have seen progress with the turnaround plan we implemented at Boux last year and the reaction to our new designs and products has been encouraging.
“The contribution to Boux’s ranges from product designed by our in house team, led by Zoe Price Smith is increasing and will be entirely influenced by them from the Autumn this year.
"However, the lower than planned growth in Boux’s overall business, partially impacted by lower footfall experienced at these locations, as well as an unsustainable cost base has meant that we are accelerating a strategic and operational review of the business, leaving no stone unturned.
“We will look to address our cost base, in particular our rents, as well as addressing the appropriate mix of channels to match the changing needs of our customers.
"Given the significant importance of the review, this will be led by me personally, supported by our Group board. The publication of Boux’s financial statements will follow pending the outcome of this review."
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