Victoria's Secret to go private

Emailed on February 21st 2020 in The Friday Forward

Private equity firm Sycamore Partners will pay $525 million for a 55% stake in L Brands’s Victoria’s Secret. Sycamore is known for brass-knuckle tactics that get results in a moribund U.S. retail market. 

The deal reportedly values VS at $1.1 billion, a humiliating number for a company that did about $7 billion in revenue last year. 

L Brands is expected to keep a 45% stake in the separate company, which will include the Pink chain. After shedding several brands in recent years, L Brands’ operations would be reduced to running the Bath & Body Works chain.

After almost six decades in charge, CEO and Chairman of L Brands Les Wexner will step down from his leadership roles (though he’ll stay on the board). Wexner was the longest-serving CEO of an S&P 500 company; now, that's Warren Buffett.

im-156008.jpeg

Subscribe to Get More Snippets Like This Straight To Your Inbox Every Friday

 
 
Sean Steigerwald