LB - Bankruptcy Watch: Is L Brands in Danger?
The pandemic has disrupted many retail businesses. But strong ones were able to ride it out and are mostly back to growth. Companies that were struggling beforehand, however, have been filing for Chapter 11 bankruptcy protection at an alarming rate. Is L Brands (NYSE: LB) next in line?
L Brands operates under three brand names: Victoria's Secret intimates, its sister brand Pink, and Bath & Body Works body care and home products. The company has started and sold many other brands over the years such as The Limited and Express.
Victoria's Secret was once the top retailers in its field, and at its height in 2016, it brought in over $7 billion.But already in 2017 sales began to decline as women weren't relating to the company's branding, featuring noninclusive body types. Brands like American Eagle Outfitters ' Aerie, which emphasizes body positivity, took over, and Aerie sees more than 30% growth in a typical quarter, including during the pandemic.
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Bankruptcy Watch: Is L Brands in Danger?