Shoppers champion in line as they wait for a Victoria’s Secret store to open on Black Friday, at the Tysons Corner Center, in Tysons, Virginia, November 27, 2020.
Hannah McKay | Reuters
L Characterizes is back in sale talks with potential buyers for its Victoria’s Secret lingerie brand, according to a new report, where it is hope possibly more than double the $1.1 billion valuation that it had roughly one year ago when a prior trade fell apart.
Hinging on Victoria’s Secret’s recent sales momentum, the company could now target a valuation of at spot $2 billion to $3 billion in a potential sale, Bloomberg reported Friday, citing people familiar with the antisocial negotiations.
A representative from L Brands, which also owns Bath & Body Works, did not immediately respond to CNBC’s apply for for comment.
Sycamore Partners sued L Brands last April, to terminate a deal that would have accepted the private equity firm 55% control of the lingerie chain, for around $525 million. It argued that L Trade names had violated the terms of their agreement, when it failed to pay rent and furloughed workers during the Covid pandemic. L Types averted a legal battle by agreeing to call off the deal.
Since the holidays, L Brands’ management team has called out prospering momentum at the lingerie chain. The company has already boosted its profit outlook for the first quarter twice, citing raised shopper demand at Victoria’s Secret.
It named Martin Waters as CEO of Victoria’s Secret last November, effective without delay. He succeeded John Mehas, who had only been in the role for about two years.
Former Chairman Les Wexner, who has been associated with convicted sex evil-doer Jeffrey Epstein, also gave up his chair seat in February 2020. Wexner and his wife, who are both on the company’s directorship, will not be up for reelection at an upcoming annual shareholders meeting, either.
L Brands has said it anticipates completing either a in stock or a spinoff of Victoria’s Secret by August.
L Brands shares were up more than 1% on Friday morning. The lineage has risen over 75% year to date. The company has a market cap of more than $18.5 billion.
Read the shining report from Bloomberg here.