Looks like nothing is going well for Victoria’s Secrets these days. The parent company of US’ largest lingerie chain, L Brands canceled the deal struck with private equity firm, Sycamore Partners to buy 55% of its stakes in February 2020.
L Brands issued a statement on Monday stating that it has decided to end the partnership with the private equity firm after the latter sued the parent company to terminate the deal in April. Reportedly, Sycamore Partners accused L Brands of violating the terms of the deal with respect to its coronavirus-led decision of keeping the stores shut and discontinuation of rent. L Brands, on the other hand, has followed with the counter-suit as well!
With respect to the current scenario, L Brands would now launch its better-performing and stable chain Bath and Body Works as a separate entity while plans to keep Victoria’s Secrets as a standalone company.
Even before the Pandemic of COVID-19 hit the world, the US’ largest lingerie chain was caught up in financial troubles owing to its decreasing sales and lack of inclusivity.
(Source- Forbes)
