L Brands is considering selling Victoria’s Secret. Credit: Limited Brands / Flickr.

US-based fashion retailer L Brands has reportedly resumed talks with potential buyers to sell its world-famous Victoria’s Secret lingerie chain.

According to insiders, the business could be valued at between $2bn and $3bn. Last year, it was valued at $1.1bn in an unsuccessful deal.

L Brands said that it plans to either sell or spin off the brand by August.

L Brands chief financial officer Stuart Burgdoerfer told the publication: “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 $5bn.

“The board and our management team continue to evaluate both a potential spin-off of the business into a separate public company and a sale of the business.

“The board is committed to pursuing the option that will return the highest value to shareholders.”

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Last May, private equity firm Sycamore Partners and L Brands cancelled their transaction agreement involving an interest acquisition in Victoria’s Secret.

The two sides initially agreed that an affiliate of Sycamore Partners will acquire a 55% interest in the brand under a $525m deal.

The transaction was called off after L Brands allegedly violated agreement terms by not paying rent and furloughed workers during the Covid-19 pandemic.

L Brands, which also owns Bath and Body Works and Victoria’s Secret PINK, recorded an earnings guidance per share range of between $0.85 and $1.00 for the first quarter of this year. This was an increase from between $0.55 and $0.65.

The company currently has 2,669 company-operated speciality stores in the US, Canada, UK, Ireland and Greater China.