Remember when Victoria’s Secret was failing and that was significant because back then not every brand, business and body was on the verge of near total ruin? Those were the days!
Back in that seemingly distant era, our last update on the state of the declining Victoria’s Secret empire revealed private equity firm Sycamore Partners had acquired a majority stake in the brand in a deal that valued the fading lingerie company at $1 billion.
News of the deal came in late February, shortly before the fallout from the coronavirus pandemic decimated the economy, taking nearly every brand and industry down with it. Now, like many of us using coronavirus as a vague excuse to abandon our obligations, Sycamore Partners is trying to back out of that deal.
The buyout firm has filed a lawsuit in Delaware seeking to liberate itself from the agreement, the Wall Street Journal reported Wednesday. The lawsuit accuses Victoria’s Secret parent company L Brands of various violations against the purchase agreement, including store closures, failure to pay rent and massive layoffs throughout the company.
Unsurprisingly, Victoria’s Secret isn’t having it. L Brands slammed the lawsuit as “invalid” in a statement, vowing to fight to keep the deal in place. “L Brands will vigorously defend the lawsuit and pursue all legal remedies to enforce its contractual rights, including the right of specific performance,” the company said. “L Brands intends to continue working towards closing the transactions contemplated by the transaction agreement.”
Following news of the lawsuit, the New York Stock Exchange temporarily halted trading in shares of L Brands on Wednesday, only to watch the stock fall 16 percent to close at $10.19 after trading resumed.
After weathering a decade of threats from a variety of attackers including Rihanna, body positivity and the brand’s own transphobia, coronavirus may finally be the thing that kills Victoria’s Secret after all. At least now it won’t have to die alone.
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