Victoria's Secret owner L Brands will instead spin off the lingerie brand, The Times reported. L Brands confirmed the news in a statement Tuesday morning.
This will split L Brands into two separate companies. The deal is expected to close in August, sources told The Times.
L Brands, which also owns Bath & Body Works, has been on the hunt for a new buyer for Victoria's Secret since a deal with private equity firm Sycamore Partners fell through in 2020.
Sycamore pulled out of the deal after filing a lawsuit that accused L Brands of violating an agreement between the two companies by closing Victoria's Secret stores during the pandemic, cutting back on new inventory, and not paying rent for April.