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.”
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.