LB - L Brands' Share Price Collapses as Sycamore Seeks to Terminate Victoria's Secret Acquisition
Private equity firm Sycamore Partners may be looking to back out of its deal to buy a controlling stake in the Victoria's Secret lingerie brand, Reuters and other outlets report, and L Brands (NYSE: LB) stock is in free fall as a result. COVID-19 already hammered L Brands in March with retail store closures, sending its share value downward almost 50%. Now the current owner of Victoria's Secret has seen its stock collapse around 20% so far in today's trading.
Back in February, L Brands inked a deal with Sycamore that saw the latter agree to buy the troubled intimate apparel brand for $525 million. As part of the deal, founder and CEO Les Wexner would step down and move into an emeritus position, and Bath & Body Works CEO Andrew Meslow would take over as CEO of L Brands. The complex transaction would have ended with Victoria's Secret as a privately held subsidiary of Sycamore Partners.
Image source: L Brands.