L Brands, the company behind the Victoria’s Secret brand, has sold a majority stake in the company to a private equity firm for $525 million.
Sycamore Partners now owns a 55 percent stake in Victoria’s Secret Lingerie, Victoria’s Secret Beauty, and Pink. L Brands will retain a 45 percent stake in the brand, which means the company is valuated at $1.1 billion.
L Brands CEO Leslie Wexner has also announced that he is stepping down after running the company since 1963.
“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,” Wexner said in a statement (via People). “Sycamore, which has deep experience in the retail industry and a superior track record of success, will bring a fresh perspective and greater focus to the business.”
“We believe that, as a private company, Victoria’s Secret will be better able to focus on longer-term results,” he added.
Victoria’s Secret has been under fire in recent years because of the actions of former CEO Ed Razek, who has been accused of sexual harassment and bullying. The company canceled the 2019 fashion show and it’s unclear what the future for the brand will hold.