Wexners plan to leave the board of L Brands
Had turned a single Limited store into a global retail powerhouse
Leslie H. Wexner’s tenure with the giant retailer he created in 1963 with $5,000 he borrowed from his aunt is coming to an end.
Wexner and his wife, Abigail, will not stand for re-election to the board of L Brands at the annual shareholders’ meeting in May, the retailer said Thursday.
The move follows Leslie Wexner’s decision last year to retire as chairman and CEO of the company that operates Victoria’s Secret and Bath & Body Works.
Wexner turned a single Limited store into a global retail powerhouse that once included such brands as Abercrombie & Fitch, Lane Bryant and Express.
“L Brands is at a terrific place in its history,” Wexner said in a statement.
He praised Sarah Nash, who took over last year as chairwoman of the board, and the company’s other leaders, saying the company is well
“Now is an ideal time for Abigail’s and my transition from the board . ... I am deeply honored to have been a part of the lives of so many associates and customers since I first opened the doors in 1963.”
positioned as it looks to separate Victoria’s Secret into another company or sell it.
“Now is an ideal time for Abigail’s and my transition from the board,” he said. “When I retired from the business last year, I said that creating this business and working with so many talented associates, literally millions of them, was a source of great pride. I am deeply honored to have been a part of the lives of so many associates and customers since I first opened the doors in 1963.”
L Brands also announced that Francis Hondal, president of loyalty and engagement at Mastercard, and Danielle Lee, chief fan officer for the National Basketball Association, have been appointed as two new independent members of the company’s board.
With the departure of the Wexners in May, the board will have 10 directors. Of the 10, six will be women including Nash.
“Serving with Les has been an inspiration for all of us at L Brands,” Nash said in a statement. “His thoughtful approach to developing brands and building dedicated and talented teams have enabled L Brands to evolve and succeed as a leading specialty retailer for nearly 60 years.”
L Brands shares have rocketed over the past year, rising from $8.51 in the early days of the pandemic, when shares on Wall Street of most companies were battered, to more than $60 on Thursday, making the company worth about $17 billion.
While L Brands has benefited from the steep rally in the stock market over the past year, the company also has seen a surge in sales of soap and sanitizer at Bath & Body Works. Sales at its struggling Victoria’s Secret brand, meanwhile, have stabilized as the retailer moves ahead with what could be the sale of Victoria’s Secret or a spinoff into a public company
Though the Wexners no longer will be part of the company in an executive capacity, they retain plenty of clout.
A regulatory filing on Thursday says the Wexners and entities they control own 15.9% of L Brands shares.
Alex Fischer, president and CEO of the Columbus Partnership, praised the Wexners and the company for how they have handled the moves in the past year.
“It’s a good example of an orderly transition. It’s very important,” he said. “Les and L Brands have effectively navigated the future.”
He also credited Wexner with recruiting key leaders for the company.
“Les and the board and the management team put together a transition insuring a key cornerstone of the Columbus economy that will be very impactful,” Fischer said.
Wexner announced in February 2020 that he would step down as CEO and chairman. He was longest-tenured CEO among the big public companies in the U.S.
His decision to resign came after he had received criticism for his ties to child sex trafficker Jeffrey Epstein and years of sliding sales at Victoria’s Secret during the #Metoo era as customers offended by the retailer’s hypersexual emphasis moved on to other brands. Epstein killed himself in August 2019 while awaiting trial on charges that he sexually exploited and abused dozens of underage girls between 2002 and 2005. He had already been previously convicted of similar crimes.
Epstein for years was a Wexner financial adviser and in 1998 was identified as president – along with Wexner – of the New Albany Co. in Ohio business records. He also became a trustee of the Wexner Foundation, but had no executive responsibilities for running it, Wexner has said.
Epstein donated $47 million to a foundation run by Mrs. Wexner, money that Mr. Wexner said later was repayment for funds stolen from the Wexners.
Fischer said though the Wexners are pulling back from L Brands, their charitable work and work with the partnership, a nonprofit, public/private economic development group led by 75 area CEOS and executives, will continue. Leslie Wexner was among the group’s founders.
“I’ve never seen Les and Abigail more committed to Columbus than I have in the last year. They’re not pulling back, they’re doubling down,” Fischer said.
“Les and Abigail’s philanthropic leadership vastly expanded the sense of the possible in this community and the company’s giving reflects that, with over $275 million given to nonprofits through the company’s foundation since its creation in 1993,” said Doug Kridler, president and CEO of the Columbus Foundation.
“Les has gone on to define and display what it can and should be to be a true Columbus business leader, in vision and in generosity.” mawilliams@dispatch.com @Bizmarkwilliams