Victoria’s Secret is being sold. But it’s no secret (pun intended) that this brand is struggling, and has been for some time.
Is it the end of an era, or a new start for the lingerie titan?
Here’s what you need to know:
(Psst! Stay tuned to all the Victoria’s Secret sales by downloading the KCL app!)
L Brands Inc. plans to sell Victoria’s Secret to Sycamore Partners.
L Brands Inc., whose flagship brands include Bath & Body Works and Victoria’s Secret, will sell the Victoria’s Secret brand to Sycamore Partners, a private-equity firm specializing in consumer and retail investments. The Victoria’s Secret brand, which includes Victoria’s Secret Lingerie, Victoria’s Secret Beauty, and PINK, has a total enterprise value of $1.1 billion.
Sycamore Partners plans to purchase a majority 55% interest in the company for approximately $525 million, making it a privately-held entity. L Brands will retain a 45% minority stake in the VS brand and continue to run the Bath & Body Works chain as a publicly-held company.
Under Sycamore’s ownership, the plan is to return the VS brand to its former level of profitability, benefitting L Brands shareholders. So, L Brands will shift its focus to its Bath & Body Works brand.
This means long-time L Brands CEO and Chairman, Leslie Wexner, is out. But, he’ll stay on the board. The current Bath & Body Works COO, Andrew Meslow, will be the new CEO when the transaction is expected to close this Thursday.
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