Les Wexner will step down from his leadership roles at Victoria’s Secret after agreeing a deal with private equity firm Sycamore Partners to take the lingerie brand private.
Sycamore will take a 55 per cent stake in Victoria’s Secret, with L Brands, which is disbanding its struggling retail empire, retaining the remainder of the business in a deal that values the company at $1.1 billion.
The brand has one shop in the Republic on Dublin’s Grafton Street.
Mr Wexner will relinquish his dual roles as chief executive and chairman of the company, after coming under increasing pressure from his relationship with disgraced financier Jeffrey Epstein. Mr Wexner is expected to remain on the board and will retain stakes in both L Brands and Victoria’s Secret.
Break-up of empire
The board of L Brands had been considering several options ranging from a break-up of its retail empire to the sale of Victoria’s Secret alone, in an effort to revive the fortunes of the group, which has suffered from falling sales.
After selling several businesses, L Brands will control Bath & Body Works as a standalone public company with Andrew Meslow at the helm.
“We believe the separation of Victoria’s Secret Lingerie, Victoria’s Secret Beauty and PINK into a privately-held company provides the best path to restoring these businesses to their historic levels of profitability and growth,” Mr Wexner said in a statement announcing the deal. – Copyright The Financial Times Limited 2020
