Victoria's Secret to change owner


02/21/2020

The American company L Brands announced sale of its lingerie brand Victoria's Secret. The controlling stake will be sold to Sycamore Partners, a private investment company that will acquire 55% of Victoria's Secret. The deal will cost about $ 525 million.



Samantha Marx
After the sale of shares, Victoria's Secret will become a private company, the press service of L Brands said. Victoria's Secret’s CEO 82-year-old Les Wexner leaves the job after the deal, and takes the post of Honorary Chairman of the Board of Directors.

“L Brands will retain a 45% stake in Victoria's Secret so that its shareholders can fully participate in enhancing the company's potential,” the press release said. The company intends to use proceeds from the transaction to reduce existing debt.

Recall that in 2019, Ed Razek, marketing director, quit Victoria's Secret because of a scandal that erupted because of his words that transgender and plus size models should not display a lingerie brand. Victoria's Secret has canceled a massive annual lingerie show. According to The New York Times, Ed Razek was charged with sexual harassment and bullying of models.

source: bloomberg.com