Victoria’s Secret to close about 250 stores in the U.S. and Canada, Bath & Body Works to close 50.
Victoria's Secret lingerie brand will close 250 stores in the U.S. and Canada after profits from the Coronavirus Pandemic declined, according to a report from brand owner L Brands. Total brand sales fell 46 percent to $821.5 million during the first fiscal quarter.
Even before the coronavirus pandemic, Victoria's Secret experienced a drop in sales. In February, L Brands announced a deal to sell a controlling stake in the brand to New York private investment company Sycamore Partners. Under the preliminary conditions, the company was to gain control of Victoria's Secret, and the remaining 45 percent of shares of L Brands would be transferred to a separate company. The brand was valued at $1.1 billion, according to sources told The Wall Street Journal, and the expected amount of the deal was $525 million. However, in April, Sycamore Partners abandoned the deal, and it did not take place.
L Brands, in addition to Victoria's Secret, owns the Pink and Bath & Body Works brands. Sycamore Partners has previously bought several manufacturers and sellers of clothing in difficult situations - Nine West, Talbots, and Hot Topic. In total, Victoria's Secret has 849 stores in North America, most of which remain closed through March due to COVID-19.