Victoria’s Secret Confirmed To Be Sold at $1.1 Billion


L Brands Inc. is close to selling a controlling stake in its Victoria’s Secret brand to private equity firm Sycamore Partners in a deal that values the lingerie brand at $1.1 billion, Wall Street Journal reported citing unidentified people familiar with the development.

Sycamore Partners is expected to buy 55% in Victoria’s Secret in a transaction that with L Brands and retain 45% in a separate firm that will include the young-adult focused Pink chain, according to the newspaper. L Brands’ billionaire founder Leslie Wexner will step down as chairman and chief executive officer, WSJ said. The deal could be announced as early as Thursday.

Wexner, 82, and the longest-serving chief executive officer on the S&P 500 Index, may remain on the board of L Brands and retain stake in both the companies.

The transaction follows years of scandal and slumping sales at the lingerie chain. The Columbus, Ohio-based firm has struggled to mend an image tarnished by allegations of misogynistic culture under Ed Razek, its controversial former chief marketing officer, as well as lingering questions about Wexner’s relationship with late convicted sex offender Jeffrey Epstein. Wexner says Epstein defrauded him.


‘The deal follows L Brands plans, laid out last September, for a turnaround at Victoria’s Secret. At the time, executives said they would improve the in-store experience and update the marketing to be more inclusive while making sure core customers don’t feel alienated.

L Brands shares have climbed almost 36% this year in New York after declining for four straight years. The company is scheduled to report quarterly results on Feb. 26.