LB - Can L Brands Turn Bath & Body Works Into a Growth Business?
L Brands (NYSE: LB) thought it had unloaded the anchor that has been its Victoria's Secret brand after Sycamore Partners agreed to purchase it for $525 million. But the two are now locked in a battle after the private equity firm tried to back out of the deal due to the coronavirus pandemic.
The retailer is pressing its case in court to force Sycamore to complete the deal, contending the hedge fund was well aware of the actions that were taken to conserve cash and even agreed with them.
So assuming L Brands is successful in shedding Victoria's Secret (it's actually selling a 55% stake to Sycamore, and will retain a minority interest in the company), investors should consider whether Bath & Body Works' candle and hand soap business is enough to make it a growth stock.