American fashion retailer L Brands has entered a definitive agreement with an affiliate of private equity (PE) firm Regent to sell the 100% ownership and operating control of its lingerie brand La Senza.
Financial details of the transaction have not been disclosed.
La Senza currently operates more than 320 stores globally, as well as an online store offering a range of products including bras, panties and lingerie.
The deal will also include the home office organisation, North American stores, e-commerce and international partnerships of La Senza.
As part of the agreement, Regent will assume La Senza’s operating liabilities and will pay L Brands in the event of a sale or other monetisation of La Senza in future.
L Brands is planning to close the deal and transfer ownership to Regent in January next year. American boutique investment bank Financo advised L Brands on the sale.
Earlier this month, the fashion retailer reported net sales of $1.596bn for the four weeks ended on 1 December 2018, compared to the net sales of $1.267bn for the same period last year. It also reported a 9% increase in comparable sales of November, compared to the prior year.
L Brands operates 3,115 company-owned speciality stores in the US, Canada, the UK, and Greater China under a range of brands such as Victoria’s Secret, Pink, Bath & Body Works, La Senza and Henri Bendel.
The company also sells its brands in more than 800 additional franchised locations globally as well as at four online stores.
In September this year, L Brands announced the closing of 23 Henri Bendel stores and the Henri Bendel e-commerce website in January 2019.