L Brands’ board of directors on July 9 approved the spin-off to separate Victoria’s Secret into a standalone company. The new publicly listed company includes Victoria’s Secret Lingerie, Pink and Victoria’s Secret Beauty brands. L Brands plans to change its name to Bath & Body Works Inc., reflecting the company’s remaining banner. The company expects the spin-off and name change to take effect on August 2.
L Brands took the final steps in separating Victoria’s Secret into an independent public company on Monday, filing the necessary paperwork with the Securities and Exchange Commission, according to an announcement sent to Retail Dive. The business will be called Victoria’s Secret & Co. and will include Victoria’s Secret Lingerie, Pink and Victoria’s Secret Beauty. The separation is expected to be completed in August.
It’s been a long road for Victoria’s Secret, and a bumpy one in recent years, as the once-dominant lingerie brand missed the memo of the #MeToo era.
The brand, which L Brands acquired in 1982 for $1 million, has long depended on otherworldly “angels” and sexualized “glamazon” marketing that has fallen out of favor in the 21st century. Despite clear signs that the consumer was ready for something new – increasingly supplied by new rivals including DTC and American Eagle’s Aerie brands – Victoria’s Secret was slow to change and sales growth plummeted .
Meanwhile, Bath & Body Works has taken over, consistently outperforming its sibling quarter after quarter as demand was fueled last year during the pandemic. L Brands resolved its issue with Victoria’s Secret early last year by selling a majority stake to private equity firm Sycamore Partners for a whopping $525 million; which failed because of the pandemic.
However, the executives remained adamant that their two brands would somehow separate. On May 11, they said they had received several offers, some of which amounted to $3 billion. None were accepted by the board, which voted unanimously to turn the brand into its own publicly traded entity. The maneuver will be completed during the month of August.
The move will be good for both brands, according to GlobalData chief executive Neil Saunders. ″[T]he divorce gives Victoria’s Secret no place to hide,” he said in comments via email. “Its numbers will no longer be flattered by the contribution of Bath & Body Works and its management team will be fully accountable to investors. company.