Victoria's Secret

Summary List Placement

L Brands, the owner of Victoria’s Secret, is reportedly on the hunt for a new buyer after a deal with a private-equity firm fell through last year, and is seeking more than double what it wanted before.

Sources familiar with the matter told Bloomberg wanted a deal that would value the brand at between $2 billion and $3 billion. Previously, Sycamore Partners had agreed to buy a 55% stake in the company for $525 million.

The private-equity firm pulled out in May 2020 after filing a lawsuit claiming Victoria’s Secret’s decision to close stores during the pandemic, cut back on new inventory, and not pay rent for April violated the two companies’ agreement. L Brands later said the decision to split was mutual.

A spokesperson for L Brands did not immediately respond to Insider’s request for comment on Friday morning. L Brands CFO Stuart Burgdoerfer confirmed to Bloomberg that the company wanted a considerably higher valuation this time round, after recouping lost sales at the back end of 2020.

“As a result of the substantial improvement in performance at Victoria’s Secret, various sell-side analysts have valued the business at as much as $5 billion,” Burgdoerfer told Bloomberg.

After several years of sliding sales, the Victoria’s Secret brand has made a comeback in recent quarters after reshuffling management and changing its brand image and marketing, which was accused of being outdated. In a recent note to clients, a group of Jefferies analysts described the brand’s progress as “admirable,” after it reported strong fourth-quarter results. 

In March this year, former longtime L Brands CEO Les Wexner stepped down from the board after pressure from investors. 

Join the conversation about this story »

NOW WATCH: Why kolinsky sable paintbrushes are so expensive

…read more

Source:: Business Insider

      

(Visited 5 times, 1 visits today)
Victoria’s Secret owner wants to sell the lingerie brand in a deal worth $2 billion or more — double what it previously asked for

Leave a Reply

Your email address will not be published. Required fields are marked *