US fashion retailer L Brands is reportedly close to selling its brand Victoria’s Secret to private equity firm Sycamore Partners.
Last month, Victoria’s Secret parent company L Brands explored the sale of its women’s wear and beauty products brand.
L Brands is in negotiations with private equity (PE) firm Sycamore Partners.
The lingerie retailer has experienced a sales decline and is also facing tough competition from online retailers.
New York-based Sycamore manages approximately $10 billion in assets. It is known for extracting value from offline retailers such as Staples, Talbots, and Nine West.
For Sycamore, a deal to buy Victoria’s Secret would be betting on a major player in the lingerie industry.
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.
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 formBy GlobalData
The deal is still in the negotiation process. It could still be aborted or delayed.
L Brands recorded a fall in its shares to over 30% last year. Following the news, L Brands stock increased by 6% in pre-market trading.
Last year, fund Barington Capital Group bought a stake in L Brands.