L Brands has announced that Victoria’s Secret and Bath & Body Works are to separate into two independent public companies.

The companies will be created through a tax-free spin-off of Victoria’s Secret to L Brands’ shareholders.

Sarah Nash, L Brands Chair, said: “In the last ten months, we have made significant progress in the turnaround of the Victoria’s Secret business, implementing merchandise and marketing initiatives to drive top line growth, as well as executing on a series of cost reduction actions, which together have dramatically increased profitability. As a result of these efforts, Victoria’s Secret is now well-positioned to operate as a standalone, public company. Further, both Bath & Body Works and Victoria’s Secret are leaders in their respective markets, and, as separate businesses, each will be ideally positioned to benefit from a sharpened focus on pursuing growth strategies best suited to each company’s customer base and strategic objectives.”

Andrew Meslow, CEO of L Brands, will remain in the position and will lead Bath & Body Works following the spin-off. Martin Waters, CEO of Victoria’s Secret, will continue to lead the company after the separation.