logo-loader
viewL Brands Inc

Victoria’s Secret to go private as underfire boss departs

Les Wexner has been criticised over his friendship with Jeffrey Epstein, the American financier convicted for sexual offences

L Brands - L Brands' Victoria’s Secret to go private, boss to leave

Victoria’s Secret is to be taken private in a deal that values the struggling US lingerie brand at US$1bn.

L Brands Inc.’s (NYSE:LB), its US parent company, announced it will sell off 55% of the designer to private equity firm Sycamore Partners and retain a 45% stake.

Following the transaction, chief executive and chairman Les Wexner will retire from the board.

Wexner has been pressured over his relationship with Jeffrey Epstein, the disgraced American financier convicted for sexual offences against young girls.

The brand is also seen as out-of-step with current thinking in terms of body positivity.

Victoria’s Secret was renowned for its seductive designs but pulled its annual fashion show last year as it looked to “evolve the marketing”.

“We believe the separation of Victoria’s Secret Lingerie, Victoria’s Secret Beauty and PINK into a privately held company provides the best path to restoring these businesses to their historic levels of profitability and growth,” Wexner said in a release.

The brand has come under fire as the industry calls for more diversity in terms of aesthetic values.

It has been compared against Savage X Fenty, a lingerie line created by Rihanna, who has previously modelled for Victoria’s Secret.

The singer’s line has become popular for promoting inclusivity, rather than selling garments that look good at the expense of comfort.

Shares in L Brands were trading 1% higher at US$24.52 on Thursday afternoon.

Quick facts: L Brands Inc

Price: - -

NYSE:LB1
Market: NYSE
Market Cap: -
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

FOR OUR FULL DISCLAIMER CLICK HERE

Watch

iCoreConnect cloud-based software is a real game changer in healthcare

iCoreConnect (OTCQB: ICCT) President and CEO Robert McDermott joined Steve Darling from Proactive to discuss the company that provides HIPAA-compliant software for the medical and dental industries. McDermott discusses a few of their services, their recent revenue growth and why listing on...

11 hours, 8 minutes ago

2 min read