Famous ladies lingerie brand Victoria’s Secret is one the verge of being sold to a private equity firm named. Sycamore Partners. L brands which is the majority shareholder of the brand is selling the around 55% of the stake to the private equity firm. The deal is worth a whopping $1.1 billion.
People who declared the news did not wish to be identified as the first news was reported to the Wall Street Journal. Thus L Brands would be left out with 45% stake in the adult innerwear company. He current chairman and chief executive officer of L Brands Leslie Wexner will also step down.
The deal is expected to be made on Thursday. Wexner is the longest serving chief executive officer among all the list of S&P 500 index companies. Currently at 82 she would still remain on the board of directors with L Brands.
The move follows after lots of speculation and reports of scandal happening at the firm. The sales of the firm have also diminished over the years. The Ohio based company’s reputations were in tatters after allegations of a misogynistic culture within the firm when Ed Razek was the chief marketing officer at the firm. There are speculations that Wexner had an illegal relationship with Jeffrey Epstein.
It has also lost its majority of the market share to its competitors. Once its products were widely sold in the market as the most comfortable innerwear for women. The rise of the e-commerce industry has also led to the drop in sales for the company.
Despite the drop in sales Victoria’s Secret was the major contributor for the revenues of its firm L Brands. It contributed to nearly 56% of the net revenues for the firm.
A detailed plan was laid out last year so that the brand could retain its core set of customers by improving the buying experience for the customers.