Victoria's Secret to be taken private by Sycamore Partners
The lingerie retailer has struggled in recent years with falling sales
L Brands' Les Wexner might step aside and spin off units, FOX Business' Charlie Gasparino reports.
L Brands is close to a deal that will give a private-equity firm control of the Victoria's Secret brand.
The transaction would give the lingerie brand a valuation of about $1.1 billion, according to the Wall Street Journal.
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Sycamore Partners is expected to take the brand private, buying 55 percent.
L Brands would keep a 45 percent stake in the separate company.
The Bath & Body Works chain would be the only remaining name under the L Brands umbrella.
L BRANDS CEO LESLIE WEXNER MAY STEP DOWN, VICTORIA'S SECRET MAY BE SOLD: REPORT
Victoria's Secret, known for its supermodel "Angels" wearing padded bras, has struggled in recent years with falling sales.
Performers and models on the runway at the 2018 Victoria's Secret Fashion Show on November 8, 2018 at Pier 94 in New York City. - Every year, the Victoria's Secret show brings its famous models together for what is consistently a glittery catwalk ext …
Last year, Victoria's Secret canceled its televised fashion show.
The deal would call for Leslie Wexner, the billionaire who has run the company for more than 50 years, to step down from his roles as CEO and chairman, according to the Journal.
NEW YORK, NY - JUNE 07: Les Wexner poses at the 2016 Fragrance Foundation Awards presented by Hearst Magazines - Show on June 7, 2016 in New York City. (Photo by Astrid Stawiarz/Getty Images for Fragrance Foundation)
He'll remain on the L Brands board and hold stakes in both companies.
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He currently owns about 17 percent of L Brands shares.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| LB | LANDBRIDGE CO. LLC | 68.66 | +7.12 | +11.57% |
L Brands ended Wednesday with a market capitalization of around $7 billion, down from $29 billion at its peak in 2015.
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Sycamore Partners would add the lingerie brand to a roster of companies it has purchased including The Limited, Hot Topic, Nine West and Staples.