Deals
Victoria’s Secret Has Limited Options in Sycamore Battle
- Private equity firm wants out of deal struck in February
- Sale of lingerie brand ‘doesn’t make sense,’ analyst says
This article is for subscribers only.
The retail shutdowns sweeping the country amid the coronavirus outbreak have put L Brands Inc. in a tough spot. With a deal to sell its iconic Victoria’s Secret brand now in jeopardy, things just got a lot worse.
The future of the ailing lingerie business is in limbo after Sycamore Partners said it wants out of the deal it struck just a few months ago to take a majority stake in Victoria’s Secret. In a court filing this week, the private equity firm said steps L Brands have taken to survive the pandemic, including furloughing workers and failing to pay rent, violated terms of the original deal.