LB - Investors Should Worry That L Brands Is Sticking With Victoria's Secret
There was a good case to be made that L Brands (NYSE: LB) could become a growth business once again if it just unloaded the ailing Victoria's Secret lingerie business and focused instead on its candle and hand soap operations.
After thinking it had off-loaded most of that albatross onto private equity firm Sycamore Partners, the coronavirus pandemic erupted, upending its plans and sending the two companies to court over completing the deal.
But L Brands surprised everyone by ending the litigation against Sycamore and allowing the firm to back out of the deal without penalty. In its place, the retailer is substituting a plan to completely spin off Bath & Body Works and turn Victoria's Secret into a viable business again.