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Victoria's Secret will not have a new owner.
L Brands, which owns the lingerie seller, said Monday that it has agreed to end a deal with Sycamore Partners that would have involved taking a controlling stake in Victoria's Secret.
Sycamore Partners sued to get out of the $525 million deal in April.
The coronavirus pandemic forced the chain to close its stores and lose sales.
On Monday, L Brands said the lawsuit with Sycamore Partners was settled.
“Like all retailers, the company faces an extremely challenging business environment," said Sarah Nash, current director and future Chair of L Brands’ Board. "Our Board believes that it is in the best interests of the company, our stockholders and our associates to focus our efforts entirely on navigating this environment to address those challenges and positioning our brands for success rather than engaging in costly and distracting litigation to force a partnership with Sycamore."
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L Brands shares fell 14 percent in extended trading.
The plan now is to spin off Victoria’s Secret into a separate company and establishing Bath & Body Works as a pure-play public company.