Deal to sell Victoria’s Secret is scrapped

U.S. & World
Victoria's Secret

FILE – In this June 7, 2017 file photo, shoppers look at merchandise at a Victoria’s Secret store in Hialeah, Fla. Shares of the owner of Victoria’s Secret are tumbling, Thursday, Feb. 20, 2020, as media reports continue to say that the struggling brand is going to being sold soon. The Wall Street Journal is reporting L Brands Inc. is close to selling Victoria’s Secret for about $1.1 billion. ( AP Photo/Alan Diaz, File)

NEW YORK (AP) — Victoria’s Secret won’t be bought after all. L Brands, which owns the lingerie seller, said Monday that it has agreed to end a February deal that would have sold a controlling stake of Victoria’s Secret to private equity firm Sycamore Partners.

Last month, Sycamore Partners sued to get out of the $525 million deal, citing the coronavirus pandemic, which forced the chain to close its stores and lose sales.

On Monday, L Brands said the lawsuit with Sycamore Partners was settled. L Brands said it now plans to spinoff Victoria’s Secret into a separate company and focus on running its Bath & Body Works chain.

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