Victoria’s Secret buyer decides to cancel the deal


04/23/2020

In February, Sycamore Partners agreed to buy a controlling stake in Victoria’s Secret for $ 525 million. However, now the fashion brand closed all American stores because of the coronavirus, and Sycamore decided to abandon the deal. The company has to terminate the agreement through the court.



Samantha Marx
Sycamore Partners, an investment company, has decided to abandon plans to buy Victoria’s Secret, a chain of stores and underwear brand, The Wall Street Journal reports. The newspaper recalls that because of the coronavirus pandemic, the fashion brand was forced to close its stores in the United States.

Sycamore Partners points out that the decisions of L Brands (the parent company of Victoria’s Secret) to close American brand stores and send most employees on unpaid leave violate the terms of the agreement between the two companies. The newspaper reports this, citing a lawsuit that Sycamore filed with a Delaware court on Wednesday. The investment company intends to obtain permission from the court to refuse the transaction.

L Brands, in turn, said that there are no substantial reasons to refuse the deal, WSJ notes. The company will “decisively assert its rights and use all legal means to comply with the contract,” the report said.

source: wsj.com