L Brands has decided not to sell Victoria’s Secret and instead spin it off into a standalone company. The announcement caps a year of weighing various options for the future of the lingerie brand.
Columbus, Ohio-based L Brands held talks with multiple interested buyers, but concluded that spinning of Victoria’s Secret will bring more value to the company’s shareholders than a sale, Reuters reported. It is reported that L Brands received several bids valued at more than $3 billion for Victoria’s Secret, but it expects to benefit more by spinning off the company.
According to the New York Times, Victoria’s Secret is expected to be valued somewhere between $5 billion and $7 billion in a spinoff to L Brands shareholders.
Last year, Victoria’s Secret came under review after a failed attempt to sell a majority stake to buyout firm Sycamore. The deal fell through at a time when the brand was forced to shutter stores and furlough its employees as it sought to keep its business afloat during the pandemic.
Once Victoria’s Secret is separated from L Brands, the lingerie brand’s chief executive Martin Waters will lead the company, while L Brands top executive Andrew Meslow will be charged with leading Bath & Body Works business.
Waters was appointed as the chief executive of Victoria’s Secret in February this year.