L Brands announced on May 11 that it will spin off Victoria’s Secret into a publicly traded company.
The Board of Directors has approved a plan that will “separate the company into two independent, public companies: Bath & Body Works, one of the leading bath, body and home fragrance retailers, and Victoria’s Secret, including Victoria’s Secret Lingerie PINK and Victoria’s Secret Beauty,” according to a press release.
The company said that the spinoff will allow the two brands to thrive in the evolving retail industry by maximizing management focus and financial flexibility.
“In the last ten months, we have made significant progress in the turnaround of the Victoria’s Secret business, implementing merchandise and marketing initiatives to drive top line growth, as well as executing on a series of cost reduction actions, which together have dramatically increased profitability,” Sarah Nash, Chair of the Board, said in the press release. “As a result of these efforts, Victoria’s Secret is now well-positioned to operate as a standalone, public company.”
L Brands Board has also been considering the possibility of a spinoff or sale of Victoria’s Secret from its financial advisors, Goldman Sachs and JP Morgan. The company discussed with multiple buyers who were interested in the spinoff or sale.
About L Brands:
L Brands is an international company with 2681 company-operated specialty stores in the United States, Canada, and China, in over 700 franchised locations globally and through websites worldwide.