THE WHAT? L Brands is rumored to have restarted talks over a possible sale of popular underwear brand Victoria’s Secret, according to a report published by Bloomberg quoting sources ‘familiar with the matter’.
THE DETAILS L Brands is said to be hoping for a considerably greater valuation for the high street fashion retailer, per Bloomberg, more than double the US$1.1 billion posited in 2020.
The sale or spinoff should be completed by the final quarter of the year.
THE WHY? With stock prices up 78 percent over the year, L Brands will be hoping to cash in on the bounce back. Stuart Burgdoerfer, CFO at Victoria’s Secret told Bloomberg, “As a result of the substantial improvement in performance at Victoria’s Secret, various sell-side analysts have valued the business at as much as US$5 billion.