L Brands is nearing a deal to sell ailing lingerie brand Victoria’s Secret to private equity company Sycamore Partners, according to a report published by CNBC on Sunday night. Quoting sources familiar with the matter, the report says the deal could be announced as early as this week.
L Brands’ owner Leslie Wexner is under mounting pressure due to his association with convicted sex offender Jeffrey Epstein, who managed his wealth for over twenty years. A report by The New York Times published last week in which dozens of current and former employees accused former Victoria’s Secret CMO Ed Razek of sexual harassment may have contributed to Wexner’s alleged plans of selling the brand.
Sycamore Partners owns the American department store Belk, office retail company Staples, women’s apparel and accessories brand The Limited, music-related apparel retailer Hot Topic, and plus-size fashion brand Torrid.
As for L Brands' portfolio, Victoria's Secret is no longer its strongest performer. The company's earnings are carried by personal care store Bath & Body Works. L Brands also owns lifestyle brand Pink. These two brands' destiny remains up in the air.
Both Sycamore and L Brands declined to comment.