Sycamore Partners delivered a notice on April 22 to L Brands conveying its intent to end the February 20 transaction agreement regarding the sale of a 55 per cent interest in Victoria’s Secret (Victoria’s Secret Lingerie, Victoria’s Secret Beauty and PINK). The latter filed a suit in Delaware state seeking a judgment that its agreement termination is valid.

L Brands believes that Sycamore Partners’ purported termination of the transaction agreement is invalid, the company said in a press release.

L Brands will vigorously defend the lawsuit and pursue all legal remedies to enforce its contractual rights, including the right of specific performance. It intends to continue working towards closing the transactions contemplated by the agreement.

L Brands, through Victoria’s Secret, PINK and Bath & Body Works, operates 2,920 company-owned specialty stores in the United States, Canada, the United Kingdom and Greater China, and its brands are also sold in more than 700 franchised locations worldwide.

Sycamore Partners had in February acquired a 55 per cent stake in Victoria’s Secret for nearly $525 million while L Brands retained the rest.

Fibre2Fashion News Desk (DS)

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