Victoria’s Secret to become a stand-alone listed company under break-up plans
Victoria’s Secret will become a stand-alone listed company under break-up plans that have been put forward by its owner.
L Brands will split into two firms – Victoria’s Secret and Bath & Body Works, which is a personal care line that includes perfumes and body creams.
It had put the lingerie group – known for its elaborate underwear fashion shows – up for sale but struggled to attract high bids.
Break-up: L Brands will split into two firms – Victoria’s Secret and Bath & Body Works, which is a personal care line that includes perfumes and body creams
L Brands reportedly received offers worth £2billion. But it believes Victoria’s Secret would be valued at between £3.5billion and £5billion if spun off into its own company.
The UK arm went into administration last year and was rescued by Next, which fought off Marks and Spencer to snap up the business.
The deal saw Next take on a 51 per cent stake in the group and saved 500 of 800 jobs. It also meant that people were able to buy bras from the brand on the Next website.
The proposals by L Brands do not affect the UK arm.
Changing attitudes to the emphasis put on women having the ‘perfect body’, as well as its high prices, meant sales at Victoria’s Secret had been lagging for years even before the pandemic.