Retail entrepreneur and La Senza director Theo Paphitis has blasted the profit-hungry retail models of debt-laden businesses for damaging the retail sector.
Speaking at the Skillsmart Retail seminar on retail apprenticeships at London’s Excel centre today, Dragon’s Den star Paphitis said that the culture of squeezing profit out of businesses had come to and end, and he called for a more “back to basics” approach.
Paphitis said: “A lot of retail has ended up in the hands of leveraged businesses whose idea was to cut costs, increase profits and pay the banks back. That world has ended”.
He added: “If any damage was done it was during this time. It’s back to basics for all of us.”
Paphitis recently took a more hands on role at La Senza following the departure of chief executive Rose Foster.