Investor Alert

The Wall Street Journal Archives | Email alerts

Feb. 19, 2020, 10:51 p.m. EST

L Brands set to sell Victoria’s Secret, which would go private

Deal with Sycamore Partners would value struggling retailer at $1.1 billion

Watchlist Relevance

Want to see how this story relates to your watchlist?

Just add items to create a watchlist now:

  • X
    L Brands Inc. (LB)

or Cancel Already have a watchlist? Log In

By Khadeeja Safdar and Cara Lombardo

Getty Images
Victoria’s Secret, with its emphasis on supermodel “Angels” wearing padded bras, has long dominated the U.S. lingerie market but has struggled in recent years with falling sales.

L Brands Inc. is near a deal to sell control of Victoria’s Secret to a private-equity firm in a transaction that values the lingerie brand at about $1.1 billion, according to people familiar with the matter.

Sycamore Partners is expected to buy 55% of Victoria’s Secret and take the struggling business private, the people said. L Brands /zigman2/quotes/202062875/composite LB +2.34%   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.

Leslie Wexner, the embattled billionaire who has run the retail company for more than 50 years, will step down from his roles as CEO and chairman, the people said. He is expected to remain on the L Brands board and retain stakes in both companies, they said. He currently owns about 17% of L Brands shares.

A deal could be announced as soon as Thursday, these people said. The Wall Street Journal first reported that L Brands was in talks with Sycamore and that Wexner was in discussions to step aside as chief executive of the company.

An expanded version of this report appears on WSJ.com.

Also popular on WSJ.com:

The bumps in the road leaving the airport.

How the drug lobby lost its mojo in Washington.

$ 24.95
+0.57 +2.34%
Volume: 4.72M
Aug. 4, 2020 4:02p
P/E Ratio
Dividend Yield
Market Cap
$6.77 billion
Rev. per Employee

Get news alerts on L Brands Inc. — or create your own.
This Story has 0 Comments
Be the first to comment
More News In

Story Conversation

Commenting FAQs »
Link to MarketWatch's Slice.