Post by account_disabled on Mar 5, 2024 20:22:19 GMT 10
Lingerie brand Victoria's Secret has a new owner. The company's current owner, L Brands, said Thursday that private equity firm Sycamore Partners will buy 55% of Victoria's Secret for approximately $525 million.
According to information from Chile Mobile Number List Global News , the Columbus, Ohio company will maintain the remaining 45% stake. After the sale, L Brands will retain its Bath & Body Works chain and Victoria's Secret will become a private company.
Les Wexner, 82, who founded the parent company in 1963, will step down as chairman and CEO after the transaction is completed, and will become chairman emeritus.
Wexner has been dealing with his own issues, including questions about his ties to late financier Jeffrey Epstein, who was indicted on sex trafficking charges.
So Victoria's Secret, known for its lace bras and annual fashion show, has been struggling in recent years.
El Secreto de Victoria
«Victoria's Secret Redesign Concept» by kapasia hem is licensed under CC BY-NC 4.0
A recent report by The New York Times highlighted the alleged culture of misogyny, bullying and harassment at the company, primarily under the leadership of Wexner and former top executive Ed Razek.
The Times reported that Razek was the subject of repeated complaints about inappropriate behavior, including attempting to kiss Victoria's Secret models and asking them to sit on his lap. The outlet also claimed that executives had alerted Wexner to Razek's conduct, and some women who complained faced retaliation.
The company's fashion show was canceled last year, and shares of Victoria's Secret's parent company have gone from triple digits less than five years ago to a quarter of that today.
The show, which aired annually on CBS and ABC for 20 years, was reportedly losing viewers each year. For two decades, the show was a staple for dazzling and expensive lingerie.
Models who walked the runway included everyone from Bella Hadid to Karlie Kloss and Gisele Bündchen. But over the years, the brand faced criticism for a lack of diversity in body shapes, as well as accusations of racism.
In 2018, the brand's chief marketing officer, Razek, stepped down from his position after making inappropriate comments about transgender and plus-size models at the show.
"It's like: why doesn't your program do this? Shouldn't you have transsexuals on the show? No,” Razek previously told Vogue . «No, I don't think we should. Well, why not? Because the show is a fantasy. "It's a 42-minute special entertainment."
Victoria's Secret also struggled to keep up with the competition and failed to respond to changing tastes among women.
Rivals like Adore Me and ThirdLove, which have emerged online and marketed heavily on social media platforms like Instagram, have focused on fit and comfort while offering more options for different body types.
Meanwhile, American Eagle's Aerie lingerie chain, which partners with women activists like Manuela Barón, has also lured customers away from Victoria's Secret.
Stacey Widlitz, president of SW Retail Advisors, a retail consultancy, said that in recent years Victoria's Secret designs were going in the opposite direction of what women wanted, becoming sexier and of poorer quality. And while Victoria's Secret last year began featuring more diverse models, including its first openly transgender model, the moves fell short.
The company suffered a 12% drop in same-store sales during the most recent holiday season, and L Brands said Thursday that same-store sales declined 10% during the fourth quarter.
Bath & Body Works, which has been a bright spot, enjoyed a 10% increase. The skincare chain accounts for more than 80% of L Brands' operating profits.
"The brand (Victoria's Secret) has lost its way, while the lingerie market is not large or high growth, and has become a commodity ," Jefferies analyst Randal Konik wrote on Thursday. "Plus, with the control of athleisure, the need for regular bras continues to decrease.
According to information from Chile Mobile Number List Global News , the Columbus, Ohio company will maintain the remaining 45% stake. After the sale, L Brands will retain its Bath & Body Works chain and Victoria's Secret will become a private company.
Les Wexner, 82, who founded the parent company in 1963, will step down as chairman and CEO after the transaction is completed, and will become chairman emeritus.
Wexner has been dealing with his own issues, including questions about his ties to late financier Jeffrey Epstein, who was indicted on sex trafficking charges.
So Victoria's Secret, known for its lace bras and annual fashion show, has been struggling in recent years.
El Secreto de Victoria
«Victoria's Secret Redesign Concept» by kapasia hem is licensed under CC BY-NC 4.0
A recent report by The New York Times highlighted the alleged culture of misogyny, bullying and harassment at the company, primarily under the leadership of Wexner and former top executive Ed Razek.
The Times reported that Razek was the subject of repeated complaints about inappropriate behavior, including attempting to kiss Victoria's Secret models and asking them to sit on his lap. The outlet also claimed that executives had alerted Wexner to Razek's conduct, and some women who complained faced retaliation.
The company's fashion show was canceled last year, and shares of Victoria's Secret's parent company have gone from triple digits less than five years ago to a quarter of that today.
The show, which aired annually on CBS and ABC for 20 years, was reportedly losing viewers each year. For two decades, the show was a staple for dazzling and expensive lingerie.
Models who walked the runway included everyone from Bella Hadid to Karlie Kloss and Gisele Bündchen. But over the years, the brand faced criticism for a lack of diversity in body shapes, as well as accusations of racism.
In 2018, the brand's chief marketing officer, Razek, stepped down from his position after making inappropriate comments about transgender and plus-size models at the show.
"It's like: why doesn't your program do this? Shouldn't you have transsexuals on the show? No,” Razek previously told Vogue . «No, I don't think we should. Well, why not? Because the show is a fantasy. "It's a 42-minute special entertainment."
Victoria's Secret also struggled to keep up with the competition and failed to respond to changing tastes among women.
Rivals like Adore Me and ThirdLove, which have emerged online and marketed heavily on social media platforms like Instagram, have focused on fit and comfort while offering more options for different body types.
Meanwhile, American Eagle's Aerie lingerie chain, which partners with women activists like Manuela Barón, has also lured customers away from Victoria's Secret.
Stacey Widlitz, president of SW Retail Advisors, a retail consultancy, said that in recent years Victoria's Secret designs were going in the opposite direction of what women wanted, becoming sexier and of poorer quality. And while Victoria's Secret last year began featuring more diverse models, including its first openly transgender model, the moves fell short.
The company suffered a 12% drop in same-store sales during the most recent holiday season, and L Brands said Thursday that same-store sales declined 10% during the fourth quarter.
Bath & Body Works, which has been a bright spot, enjoyed a 10% increase. The skincare chain accounts for more than 80% of L Brands' operating profits.
"The brand (Victoria's Secret) has lost its way, while the lingerie market is not large or high growth, and has become a commodity ," Jefferies analyst Randal Konik wrote on Thursday. "Plus, with the control of athleisure, the need for regular bras continues to decrease.