Victioria’s Secret to be sold for R7.9 billion after declining sales and ethics being questioned

Winnie Harlow walks the runway during the 2018 Victorias Secret Fashion Show at Pier 94 on November 8, 2018 in New York City.  (Photo by Taylor Hill/FilmMagic),
Winnie Harlow walks the runway during the 2018 Victorias Secret Fashion Show at Pier 94 on November 8, 2018 in New York City. (Photo by Taylor Hill/FilmMagic),

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.

READ MORE: 4 inclusive SA lingerie brands to opt for in light of Victoria's Secret fat and transphobic comments

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”.

SOURCES: CNN, ReutersVogue, Wall Street Journal

Follow us on social media: FacebookTwitterInstagram

Sign up to W24’s newsletters so you don't miss out on any of our hot stories and giveaways.

We live in a world where facts and fiction get blurred
In times of uncertainty you need journalism you can trust. For only R75 per month, you have access to a world of in-depth analyses, investigative journalism, top opinions and a range of features. Journalism strengthens democracy. Invest in the future today.
Subscribe to News24
Voting Booth
What are you most looking forward to buying this Black Friday?
Please select an option Oops! Something went wrong, please try again later.
It looks like the pandemic is still far from over, so more loungewear
17% - 23 votes
The lockdown has made me want to invest more in homeware and furniture, so I'll be adding those to my Black Friday cart
26% - 36 votes
I'm going to use it to get a headstart on Christmas gifting
38% - 53 votes
Footwear is all about comfort this year, so definitely sneakers
13% - 18 votes
It's a good time to get discounted wigs and other beauty essentials
6% - 8 votes