The sparkle has long disappeared at Victoria's Secret and now the struggling lingerie retailer is going private… and it's longtime, pioneering CEO - who later got embroiled with the Jeffrey Epstein Scandal - will part ways with the company as well.
Parent company L Brands (NYSE:LB) on Thursday said it will sell a controlling stake in Victoria's Secret to private equity firm Sycamore Partners in deal that values the brand at $1.1 billion.
Victoria's Secret lingerie used to be a must-have for female shoppers but sales have been falling for some time. Customers complained about a brand that had gone stale, and an inability to cater to all body types, that opened the door for lower priced and more consumer responsive competition - both online and in-store - to eat away at Victoria's Secret dominance.
Pressure to sell off the unit ALSO gathered steam when L Brands Chairman and CEO Leslie Wexner was linked to disgraced financier Jeffrey Epstein, who managed Wexner's personal fortune, which is in the billions of dollars. Epstein was indicted last year for trafficking dozens of underage girls before being found dead in a New York prison.
As a result of Thursday's deal, Wexner, who transformed retail as the longest-serving CEO of any company in the S&P 500, will step aside and become chairman emeritus.