Victoria’s Secret Won’t Wait Forever
A turnaround is allowing the lingerie chain to spin off from L Brands in a deal that could earn it a richer valuation than a sale. Will would-be buyers consider higher offers?
Victoria’s Secret is daring buyers to step in and stop its spinoff. Will they take the bait?
Photographer: Wang He/Getty Images AsiaPacVictoria’s Secret, no stranger to the catwalk, is putting on its best look to take a spin. Whether it will turn buyers’ heads is another matter.
Parent L Brands Inc. said on Tuesday that the group would spin off Victoria’s Secret to focus on its fast-growing Bath & Body Works chain in the latest twist for the onetime lingerie powerhouse. Before the pandemic, after sliding sales and an image that was out of step with consumer tastes, L Brands sought to sell Victoria’s Secret and even lined up a $1.1 billion deal to offload a controlling stake to Sycamore Partners. But the transaction collapsed after the private equity group tried to extricate itself as the pandemic worsened and the chain closed stores and furloughed staff. Now, though, the retailer seems to be enjoying some tailwinds as Americans have spent their stimulus checks in the shops and economies have reopened — so much so that an alternative to a sale is credible and the company is targeting a separation in August.