Deal to sell Victoria's Secret is called off

On Monday, L Brands said the lawsuit with Sycamore Partners was settled

Get all the latest news on coronavirus and more delivered daily to your inbox.  Sign up here.

Continue Reading Below

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.

GET FOX BUSINESS ON THE GO BY CLICKING HERE

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.

VICTORIA’S SECRET CANCELS MUST-SEE FASHION SHOW AFTER RATINGS COLLAPSE

“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."

TickerSecurityLastChangeChange %
LBL BRANDS INC.39.69-0.29-0.73%

L Brands shares fell 14 percent in extended trading.

CLICK HERE TO READ MORE ON FOX BUSINESS

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.