Beauty Packaging Staff02.20.20
L Brands is selling a majority stake in Victoria's Secret, and says it will focus on growing Bath and Body Works as a separate company, CNBC reported.
Sycamore Partners, a private equity firm, will acquire a 55% share in Victoria’s Secret from L Brands for $525 million.
L Brand founder, 82-year-old Les Wexner, will step down as its chairman and CEO, remaining on the board as chairman emeritus. Andrew Meslow will be promoted from chief operating officer to CEO, the article states.
Victoria's Secret sales have been down for three straight years, according to reports, although they are still the leader in the lingerie category. More consumers, however, are finding new direct-to-consumer lingerie brands appealing, such as Adore Me and Third Love -- and many feature 'real' women in ads, not models.
CNBC reports that L Brands will "sharpen its focus" on Bath and Body Works, which has driven sales growth for the company -- and is recently reporting slower sales due to lighter foot traffic in its stores.
Photos via L Brands and Bath and Body Works
