L Brands plans to spin off Victoria’s Secret
Change of heart at L Brands. The retailer now plans to spin off its Victoria’s Secret business into a standalone company instead of selling it.
The company concluded a spin-off would offer more value to its shareholders than a sale after holding talks with interested buyers. It had earlier failed to sell a majority stake in the brand to buyout firm Sycamore in 2020.
The New York Times reports L Brands expects Victoria’s Secret to fetch a valuation as high as $7 billion in a spin-off, roughly $2 to $4 billion more than the bids it had received.
A deal would result in splitting the company into two public units – Bath & Body Works and Victoria’s Secret. It is expected to close in August.
Shares of L Brands, which have risen nearly 80% this year, fell more than 2% in early trading Tuesday.
