L Brands in deal to sell one of its store brands
L Brands is slimming down its brand portfolio again.
The parent company of Victoria’s Secret has signed a definitive agreement to sell its lingerie brand La Senza to an affiliate of private equity firm Regent LP. The deal includes La Senza’s home office organization, North American stores and e-commerce and international partnerships. There are currently some 126 La Senza company-owned stores in the U.S. and Canada.
The financial terms of the agreement were not disclosed. L Brands said it will sell 100% of its assets in La Senza in exchange for Regent’s agreement to assume La Senza’s operating liabilities and to provide L Brands potential “future consideration” of other monetization if Regent should sell the brand.
In September, L Brands announced it was looking for options for La Senza, along with plans to shut down Henri Bendel, which it acquired in 1985. All 23 Henri Bendel stores and its e-commerce website will go dark in January. The company said it was making the move as part of its ongoing effort to improve overall business performance and increase shareholder value by focusing on its core brands, which include Bath & Body Works and Victoria’s Secret.
Canada-based La Senza, which L Brands purchased in 2007, has struggled to gain a foothold in the U.S. It is expected to post revenues and operating loss in 2018 of approximately $250 million and $40 million (approximately $0.12 per share), respectively, according to an estimate by L Brands.
L Brands was advised on the sale, expected to be completed in January, by Financo.
The parent company of Victoria’s Secret has signed a definitive agreement to sell its lingerie brand La Senza to an affiliate of private equity firm Regent LP. The deal includes La Senza’s home office organization, North American stores and e-commerce and international partnerships. There are currently some 126 La Senza company-owned stores in the U.S. and Canada.
The financial terms of the agreement were not disclosed. L Brands said it will sell 100% of its assets in La Senza in exchange for Regent’s agreement to assume La Senza’s operating liabilities and to provide L Brands potential “future consideration” of other monetization if Regent should sell the brand.
In September, L Brands announced it was looking for options for La Senza, along with plans to shut down Henri Bendel, which it acquired in 1985. All 23 Henri Bendel stores and its e-commerce website will go dark in January. The company said it was making the move as part of its ongoing effort to improve overall business performance and increase shareholder value by focusing on its core brands, which include Bath & Body Works and Victoria’s Secret.
Canada-based La Senza, which L Brands purchased in 2007, has struggled to gain a foothold in the U.S. It is expected to post revenues and operating loss in 2018 of approximately $250 million and $40 million (approximately $0.12 per share), respectively, according to an estimate by L Brands.
L Brands was advised on the sale, expected to be completed in January, by Financo.