Corporate Buyers Remorse: Victorias Secrets Sale Falls Through


From wondering. I'm David Brown and this business. Wars daily on this Monday may eleventh. Victoria's secret is starting to look like one of those. Oh things around the house that you can't seem to sell and maybe you can't even give it away in February L. Brands. Victoria's secret's parent company. Agreed to sell a majority of the lingerie brand to a private equity firm for just over half a billion dollars. The deal with Sycamore partners appear to be a last ditch effort to keep Victoria secret alive. Not only has the brand been perceived to be out of touch with today's body positive customers but it has also been buffeted by scandal notably L. Brand CEO Les Wexner had been associated with Jeffrey Epstein. The alleged sex trafficker who died in his prison cell last year. In addition the New York Times published an expose about. Victoria's secret in February. The investigation turned up. Detailed sexual harassment and hostile workplace claims by employees and models claims that L. Brands didn't deny between the scandals and years of marketing misteps. It was as if the once glittering Victoria's secret couldn't get out of its own way though still selling plenty of merchandise. The brand lost more than six hundred million dollars last year. As Victoria's secret star was falling it sibling brand. Bath and body works was soaring. But Victoria's secrets problems. Were a drag on bath and body works and that damaged their parent company. L. Brand stock price fell more than half in the twelve months. The Wall Street Journal reported. So the deal was sycamore. Seemed like a solution to L. Brands. Difficulties Sycamore would take. Victoria's secret private but leave bath and body works. In the hands of L. Brands L. Brands could then pour more resources into the soap and candle retailer whose profits were bubbling along CEO. Wexner who is eighty two years old planned to step down from his post when the deal closed but last week the deal fell apart in late. April Sycamore Partner Sued L. Brand saying that Victoria secret hadn't kept up. Its end of the bargain among other things. Sycamore criticized L. Brands for closing. Virtually all of its sixteen hundred brick and mortar. Victoria's secret and pink stores globally failing to pay April rant and furloughing most of its employees during corona virus. Lockout as a result. Sycamore said the private equity firm should be allowed to back out of the deal. Some analysts defended L. BRANDS. Actions since closures were either prudent or mandated by state and local governments retail dives. Daphne Jalan reported others however said L. Brands should have consulted. More closely with Sycamore. L. Brands fought back. They countersued saying that. Sycamore suit appeared to be an apparent case of buyer's remorse according to Jalan they remarked on the irony. That other retailers already owned by Sycamore also closed their doors finally L. Brands accused Sycamore of simply trying to negotiate a lower purchase price. For Victoria's secret L. brands appear to be ready for a fight but last Monday the two companies said the deal was off. L. Brand said it didn't WANNA spend time and money in court trying to force a partnership. Sycamore walked away unscathed which leaves L. Brands in a precarious position. Some analysts are speculating that the company will put Victoria secret up for

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