Victoria’s Secret may be going private.
L Brands, parent company of Victoria’s Secret and Bed, Bath & Body Works, is close to a deal to selling the troubled lingerie brand to private equity firm Sycamore Partners, reported CNBC. The deal could be announced this week, the report said.
Falling revenue at Victoria’s Secret has continued to take a toll on L Brands’ performance. The brand’s same-store sales fell 7% in its third quarter, compared to a 2% decrease in the year-ago period. Victoria’s Secret has struggled to find its footing as consumers increasingly opt for lingerie brands that emphasize comfort, inclusion, and diversity, such as ThirdLove, Lively and American Eagle’s Aerie.
In January, reports surfaced that Les Wexner, founder and chief executive of L Brands and the longest-serving CEO of an S&P 500 company, may be stepping down from his post — and selling Victoria’s Secret.
L Brands and Sycamore declined comment in the CNBC report.