Victoria’s Secret set to have new owners

SYCAMORE PARTNERS AGREED TO BUY 55% IN VICTORIA’S SECRET IN THE TRANSACTION, WHILE L BRANDS

WILL RETAIN A 45% MINORITY STAKE

NEWYORK: L Brands Inc. agreed to sell a controlling stake in its Victoria’s Secret brand to private equity firm Sycamore Partners in a deal that values the lingerie brand at $1.1 billion.

Sycamore Partners agreed to buy 55% in Victoria’s Secret in the transaction. The lingerie brand, which will include the Pink line of young-adult focused underwear, will become a private company. L Brands will retain a 45% minority stake, while Bath & Body Works will be a public standalone company, L Brands said Thursday in a statement and a memo to employees that was seen by Bloomberg News.

L Brands also said billionaire founder Leslie Wexner will step down as chairman and chief executive officer. Wexner, 82, the longest-serving chief executive officer on the S&P 500 Index, will be chairman emeritus, remaining on the board of L Brands.

“I think about the endless possibilities ahead for this company. And I’ve thought about where I fit in the picture,” Wexner said in the message to employees. “In keeping with this same thoughtful examination, I have decided that now is the right time to pass the reins to new leadership.”

The transaction follows years of scandal and slumping sales at the lingerie chain. The Columbus, Ohio-based firm has struggled to mend an image tarnished by allegations of misogynistic culture under Ed Razek, its controversial former chief marketing officer, as well as lingering questions about Wexner’s relationship with late convicted sex offender Jeffrey Epstein. Wexner says Epstein defrauded him.

L Brand shares fell as much as 10% to $21.81 on Thursday.

Victoria’s Secret, still tied to the push-up bra aesthetic the company projected for many years, has lost ground to competitors that market their products as comfortable and body-positive. A broader retail shift to e-commerce and away from shopping malls has also dealt a blow.

After this sale, L Brands would be reduced to running the Bath & Body Works chain of skin care products.