L Brands intends to spin-off its Victoria’s Secret business as a standalone company following the termination of its agreement to sell the business to Sycamore Partners. L Brands and Sycamore Partners on Monday confirmed by “mutual agreement” the termination of Sycamore Partners’ previously announced agreement to acquire the retailer’s Victoria’s Secret business.
“Like all retailers, the company faces an extremely challenging business environment, our board believes that it is in the best interests of the company, our stockholders and our associates to focus our efforts entirely on navigating this environment to address those challenges and positioning our brands for success rather than engaging in costly and distracting litigation to force a partnership with Sycamore. We are implementing significant cost reduction actions and performance improvements at Victoria’s Secret while continuing to drive strong growth at Bath & Body Works.” – stated current director and future board chair Sarah Nash.
L Brands also said that its previously announced leadership and governance changes will go into effect on May 14, the same day as its 2020 annual stockholders meeting. At that time, Leslie Wexner will step down as CEO and chairman, but remain a board member as chairman emeritus. Also, Andrew Meslow, CEO of Bath & Body Works, will become CEO of L Brands and join the board and Sarah Nash will become board chair.
