L Brands in joint venture to save Victoria’s Secret U.K.

A British retailer has acquired a majority stake in Victoria’s Secret bankrupt UK business.

Next PLC and L Brands have formed a joint venture to acquire the majority of the assets of the U.S. company’s Victoria’s Secret business in the U.K. Under the agreement, Next, which operates more than 500 stores in the U.K., will own 51% of the joint venture while Victoria’s Secret will own 49%. The U.K. division of Victoria’s Secret went into administration (the British version of bankruptcy protection) in June after its 25 stores were forced to close due to the COVID-19 pandemic.

The newly formed venture will operate all Victoria’s Secret stores in the U.K. (and Ireland), subject to agreeing to terms with landlords. The brand’s U.K. digital business, currently operated by Victoria’s Secret in the U.S., will be folded into the venture in spring 2021.  

The agreement is subject to regulatory clearance

“We are pleased to take this next step in our profit improvement plan for Victoria’s Secret,” said Martin Waters, CEO, L Brands International. “Next’s capabilities and experience in the U.K. market are substantial, and our partnership will provide meaningful growth opportunities for the business.”

Added Lord Simon Wolfson, CEO of Next PLC, added “Next is very pleased at the prospect of working in partnership to expand the Victoria’s Secret brand in the U.K. and Ireland both in stores and online.”

L Brands, through its Bath & Body Works, Victoria’s Secret and Pink brands, operates 2,709 company-owned specialty stores in the U.S., Canada, the U.K. and Greater China.