On Thursday, Victoria’s Secret was sold for $525 million to Sycamore Partners’ private company. L Brands, the corporation which owns Victoria’s Secret, will retain a 45% minority stake. The intimate company will become a fully private company.
A statement was issued by L Brands CEO Leslie Wexner that shared the changes within the company.
“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.”
As apart of the deal, Wexner will be stepping down as CEO. But, he will resume as a chairman in an honorable position, CNN reports. Wexner was the longest CEO of an S&P 500 company.
Apparently, Victoria’s Secret generated $7 billion dollars last year, however, the brand suffered an extreme 12% drop in sales during the holiday season.