L Brands strips off Victoria s Secret as standalone biz despite sales increase from 2020 Details 12 May 2021
L Brands is spinning off Victoria s Secret to its shareholders instead of selling the brand. The parent company previously evaluated the possibility of either option and also received interest from and held discussions with multiple potential buyers. However, L Brands concluded that separating Victoria s Secret and Bath & Body Works into two separate public companies would provide shareholders with more value than a sale.
L Brands explained that the benefits of separating these two businesses include distinct strategic and management focus on specific operational and growth priorities and tailored capital deployment strategies based on each company’s operating and financial model, and the ability for the investment community to value each business independently and create significant value and certainty for our customers, e
L Brands expects to complete the spinoff of Victoria s Secret by August, and both it and the other remaining brand of Columbus retail behemoth L Brands Bath & Body Works will keep their headquarters in Columbus as separate, publicly traded companies.
The retailer announced Tuesday the long-awaited decision on what to do with the lingerie brand, a decision that has been put on hold for nearly a year.
The two companies will divide up the company s Columbus office and operations spaces, and a small number of additional home office workers likely will be needed for some tasks that both brands now share, L Brands said.
L Brands, the holding company of
Victoria s Secret, is splitting off the lingerie division. After a previous sales attempt failed, Victoria s Secret is now left to fend for itself.
Spin-off yields highest return
The American L Brands is splitting into two parts: the current CEO of the group, Andrew Meslow, will remain in charge of personal care brand
Bath & Body Works, while lingerie chain Victoria s Secret will be made independent under the leadership of its current CEO Martin Waters. This is reported by Reuters.
The spin-off is estimated to be worth between 5 and 7 billion dollars, which is more than the lingerie label would receive in the event of a takeover. In 2020, L Brands already tried to divest the brand, but the bids barely topped 3 billion dollars. A deal with investor group
L Brands to spin off Victoria s Secret into separate public company theglobeandmail.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from theglobeandmail.com Daily Mail and Mail on Sunday newspapers.
The fashion retailer will split into two public companies by August 2021.
L Brands expects £2.14 billion of sales in Q1 that concluded on May 1st.
L Brands Inc. (NYSE: LB) cancelled its plans of selling Victoria’s Secret as its Board of Directors authorised splitting the company on Tuesday into two independent, publicly traded companies, Victoria’s Secret and Bath & Body Works.
L Brands shares were a little under 5% down in premarket trading on Tuesday. The stock is now trading at £47 per share versus £28 per share at the start of the year.
The transaction is likely to complete in August
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