THE WHAT? L Brands has unveiled it is to operate Victoria’s Secret as a standalone business following the collapse of the Sycamore Partners deal, according to a report by Bloomberg.
THE DETAILS The company will operate Bath & Body Works as a public company, having agreed to cancel the deal with Sycamore, with the two companies now working to settle all pending litigation.
L Brands is set to disclose further information of the plans going forward in an earnings call scheduled for 21st May, 2020.
Sarah Nash, Current Director and future Chair of L Brands’ Board, said, “Like all retailers, the company faces an extremely challenging business environment. Our Board believes that it is in the best interests of the company, our stockholders and our associates to focus our efforts entirely on navigating this environment to address those challenges and positioning our brands for success rather than engaging in costly and distracting litigation to force a partnership with Sycamore.
“We are implementing significant cost reduction actions and performance improvements at Victoria’s Secret while continuing to drive strong growth at Bath & Body Works. We will continue to make decisions and take actions with the best interests of all our stakeholders and the future of our company in mind.”
THE WHY? The deal with Sycamore came to end in late April when the company sued to terminate the transaction, blaming L Brands for violating agreement terms by not paying rent and furloughing workers. L Brands countersued in order to retain the terms.
L Brands CEO and Chairman Leslie Wexner will stand down from his role, with Bath & Body Works head Andrew Meslow taking over as CEO of the parent company. Sarah Nash will become Chair of the board.