Victoria's Secret-owner L Brands CEO Leslie Wexner confirmed it is selling its struggling Victoria's Secret business to Sycamore Brands, a private equity firm.
CNN reports that the firm will buy 55% of Victoria's Secret in a $525 million (about R7.9 billion) deal, while L Brand retains the 45% stake, but Victoria's will become a fully private company.
The Wall Street Journal previously reported that L Brands was exploring strategic alternatives that could result in a full or partial sale of the lingerie brand.
The company has been under pressure from an active investor to sell the struggling Victoria's Secret brand, where sales have fallen for at least four quarters.
Customers have been buying cheaper sports bras and bralettes from the likes of Aerie and Rihanna's Savage x Fenty.
The Journal also reports the billionaire who built Victoria's Secret, Abercrombie & Fitch and The Limited, Leslie Wexner is in talks to step aside as CEO.
He's been in the headlines for his association with U.S. financier Jeffrey Epstein who died in prison after being indicted on charges of sex trafficking underage girls. Leslie Wexner has not been accused of any wrongdoing.
First off, Victoria’s Secret is accused of being transphobic, fatphobic and perpetuating a negative body image.
This after Ed Razek, the former chief marketing officer of Victoria’s secret parent company, L Brands, and executive vice president of public relations at Victoria’s Secret, made the following comment in an interview with Vogue: “Shouldn’t you have transsexuals in the show? No. No, I don’t think we should. Well, why not? Because the show is a fantasy”.