L Brands Inc, the parent company of Victoria’s Secret, has made the decision to cancel the sale of its majority stake in the lingerie brand to Sycamore Partners, a buyout firm. This move comes as a resolution to the ongoing legal dispute between the two companies regarding the $525 million deal.

In the wake of this announcement, L Brands saw a significant decline in its stock prices, dropping by 11% during extended trading. Rather than going ahead with the sale, the company has expressed its intention to concentrate on operating Victoria’s Secret and Bath & Body Works as independent entities.

L Brands believes that it is more advantageous to maneuver through the current challenging business environment than to be involved in a costly and distracting legal battle with Sycamore. As a result, both parties have agreed to drop all pending litigation, and no termination fee will be required.

Originally, Sycamore Partners had agreed to acquire a 55% stake in Victoria’s Secret in February. However, the firm filed a legal complaint against L Brands in late April, accusing them of violating the terms of the deal by closing a significant number of Victoria’s Secret and Pink stores without obtaining permission from Sycamore.

In response to these developments, L Brands has appointed its Chief Financial Officer, Stuart Burgdoerfer, as the interim CEO of Victoria’s Secret. This decision is part of the leadership changes that have been announced, including the impending departure of L Brands CEO, Leslie Wexner.

The cancellation of this deal signifies a crucial turning point for both L Brands and Victoria’s Secret. As they strive to navigate the challenges posed by the current business climate, their focus will now shift towards rejuvenating the brand and ensuring its future success.

For more information on this topic, you can visit the following links:
1. Victoria’s Secret Official Website
2. L Brands Official Website