Victoria's Secret

History

2022: Withdrawal from the Russian market amid conflict in Ukraine

On June 1, 2022, Victoria's Secret announced its final departure from Russia. The decision was made against the background of the conflict in Ukraine and the sanctions imposed against Russia by the United States and their satellite countries.

2020: Disruption of the deal to sell the company

On April 22, 2020, the investment company Sycamore Partners announced that it had abandoned the acquisition of Victoria's Secret for $525 million two months after the agreement was concluded. A potential buyer changed his mind due to the COVID-19 coronavirus pandemic, which undermined the American economy and led to the closure of a huge number of stores.

Sycamore Partners planned to buy a 55% stake in Victoria's Secret from L Brands. L Brands was going to transfer the remaining 45% to a separate company, retaining the Pink brand. The value of the entire Victoria's Secret business was estimated at $1.1 billion.

The company that decided to buy Victoria's Secret refused to deal for $0.5 billion due to coronavirus

Leslie Wexner, who ran the lingerie manufacturer for about 50 years, had to leave all leadership positions. In addition to Victoria's Secret and Pink, L Brands includes the Bath & Body Works brand.

Sycamore Partners has also filed a lawsuit in a Delaware (US) court seeking a declaratory decision that  it is legal to terminate the deal.

Victoria's Secret, due to the coronavirus pandemic, was forced to close its stores in the United States and send most employees on unpaid leave. Such a decision violates the terms of an earlier agreement, Sycamore Partners said. 

The collapse in the majority sale continued a string of setbacks for Victoria's Secret events. Thus, the company canceled the branded show-show of underwear after criticism for the fact that models who do not meet the "golden" beauty standards are not allowed on the podium. Victoria's Secret models later accused the company's marketing director of sexual harassment.

Following the announcement that the deal with Sycamore Partners was broken, L Brands fell 20%.

Sycamore Partners previously bought several clothing manufacturers and sellers in a difficult situation. These include Nine West, Talbots and Hot Topic.^[1]

Notes