Once a powerful lingerie brand worth US $ 1.1 billion, Victoria’s Secret goes private in a deal!
The company’s owner L Brands confirms that the private-equity firm Sycamore Partners will buy 55 per cent of stakes in Victoria’s Secret, which equals to US $ 525 million. Remaining 45 per cent of the stakes will be taken by The Columbus, Ohio.
Thereafter, L Brands will be left with its Bath & Body Works chain.
The price, at which Victoria’s Secret is sold, marks a decline for the brand that had generated US $ 7 billion revenue last year. Shares had slumped by nearly 4 per cent or 88 cents which comes close to US $ 23.42.
Commenting on the deal, Les Wexner, who stepped down from his leadership role, stated that this deal would give best path to restore Victoria’s Secret to their ‘historical levels of profitability and growth.’
He further adds, Sycamore will bring a ‘fresh perspective and greater focus to the business.’