L Brands' Victoria’s Secret to go private, boss to leave

L Brands Inc.’s (NYSE:LB) Victoria’s Secret was valued US$1bn in a deal to take the lingerie brand private. The US parent company announced it will sell off 55% of the struggling designer to private equity firm Sycamore Partners, retaining a 45% stake. Following the transaction, chief executive and chairman Les Wexner will retire from the board. Wexner has been pressured over his relationship with Jeffrey Epstein, the American financier convicted for sexual offences in the wake of the #MeToo movement. “We believe the separation of Victoria’s Secret Lingerie, Victoria’s Secret Beauty and PINK into a privately held company provides the best path to restoring these businesses to their historic levels of profitability and growth,” Wexner said in a release. Victoria’s Secret, popular for its seductive designs, pulled its annual fashion show last year as it looked to “evolve the marketing”. Victoria's Secret had been losing ground to e-commerce startups like ThirdLove and Rihanna's Savage X Fenty. So I'd be remiss if I didn't mention that this Victoria's Secret deal was announced on RiRi's birthday #HappyBirthdayRihanna https://t.co/QGD77tlBwD — Jordyn Holman (@JordynJournals) February 20, 2020 The brand has come under fire as the industry calls for more diversity in terms of aesthetic values. It has been compared against Savage X Fenty, a lingerie line created by Rihanna, who has previously modelled for Victoria’s Secret. The singer’s line has become popular for promoting inclusivity, rather than selling garments that look good at the expense of comfort. Shares in L Brands were trading 1% higher at US$24.52 on Thursday afternoon.