Private equity firm Sycamore Partners and L Brands have mutually called off the deal they had previously agreed to take lingerie giant Victoria’s Secret private.
Also Read: Sycamore Partners tries to back out; Victoria’s Secret deal may fall through
The decision comes after Sycamore Partners blamed L Brands for violation of their contract.
Sycamore Partners also filed a lawsuit against the conglomerate in the Delaware, moving the Court of Chancery to terminate the agreement.
L Brands had expressed their concerns and pledged to defend their actions during the pandemic with all possible legal remedies.
However, after calling off the deal, L Brands is still committing to establish Bath & Body Works; it is more lucrative entity, as a pure-public company and pursuing all steps necessary to take Victoria’s Secret private.
The lingerie retailer has been facing huge decline in sales due to their rigid ideals of femininity and inability to evolve with the current times. But as all companies are floating in the same boat during the pandemic, L Brands is urging “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,” as per a statement by the company.
As the deal turned sour, the company has announced that Stuart Burgdoerfer, current CFO of L Brands, will serve as interim CEO of Victoria’s Secret along with fulfilling his duties as the CFO.
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