Victoria's Secret also struggled to keep up with competition and failed to respond to changing tastes among women. Five years ago, Victoria's Secret produced almost two-thirds of the revenue for its parent company, which was then worth $28 billion.
The other is that the company is selling a 55% stake in its most high-profile holding, Victoria's Secret, to private equity firm Sycamore Partners. The company, based in Columbus, Ohio, will keep the remaining 45 percent stake.
Five years ago, Victoria's Secret produced about two-thirds of the revenue for L Brands, which was a total of $28 billion.
Upon the closing of the transaction, Leslie Wexner, chairman and chief executive officer (CEO) of L Brands, will step down.
L Brands has also come under scrutiny because its chief executive Les Wexner has ties to the late financier Jeffrey Epstein, who was indicted on sex-trafficking charges. He will take the reins and join L Brand's board when the transaction closes. Wexner, the founder of the then Confined Stores Inc., purchased Victoria's Secret in 1982 and turned it into a effective retail drive. Previously, L Brands counted The Limited, Lane Bryant, Henri Bendel, Abercrombie & Fitch, Express and more as part of its portfolio.
The selling price signifies a marked decline for a brand with hundreds of stores that booked about seven billion dollars (£5.4 billion) in revenue previous year.
"We believe the separation of Victoria's Secret Lingerie, Victoria's Secret Beauty and PINK into a privately held company provides the best path to restoring these businesses to their historic levels of profitability and growth", Wexner said in a prepared statement. "Sycamore, which has deep experience in the retail industry and a superior track record of success, will bring a fresh perspective and greater focus to the business". Now, the big question is whether the once sought after but now struggling brand can be reinvented for a new generation of women demanding more comfortable styles.
Victoria's Solution, which the moment described pretty with its leggy supermodels in their lacy bras and oversized angel wings, has a new owner. Rivals like Adore Me and ThirdLove, which have sprouted up on line and marketed on their own closely on social media platforms like Instagram, have concentrated on fit and comfort though providing additional choices for various system varieties.
Aerie, a lingerie brand owned by American Eagle Outfitters, started featuring non-models in its marketing and advertised unpolished photos of women wearing its products in 2014.
The management workforce at Victoria's Key primarily was creating what guys want, not what women of all ages want, said Neil Saunders, handling director of GlobalData Retail. "It was always about men feeling good".
After two straight years of declining sales, Victoria's Secret shuttered 53 of its 1,143 stories in 2019. Model Andi Muise told the Times she was passed over for the 2008 fashion show - for the first time in four years - after she refused Razek's advances.
Kloss modeled for Victoria's Secret from 2011 to 2015 and is a sister-in-law of Ivanka Trump. L Brands said on Thursday that same-store sales declined 10 percent at Victoria's Secret during the fourth quarter. Tub & Human body Will work, which has been a vivid place, loved a 10% maximize. "Furthermore, with athleisure taking over, the need for regular bras continues to wane".
That glamor has faded and so have sales in the last few years.
The firm has also been beset by allegations of a harmful operate setting and its founder just lately apologized for his ties to Epstein, who was identified hanged in his jail cell just after his indictment. Epstein signed Wexner's tax returns, was allowed to borrow money on his behalf and over the years obtained a portfolio of properties including a mansion in Manhattan and a luxury estate in OH worth roughly $100m that had previously been owned by Wexner or his companies.
Mr Wexner has said he completely severed ties with Epstein almost 12 years ago and accused him of misappropriating "vast sums" of his fortune.
Wexner supplied an apology at the opening handle of L Brands' once-a-year trader working day past fall, indicating he was "humiliated" by his former ties with Epstein. And as Wexner's departure coincides with the sale, it's hard not to feel a major shift: The era of L Brands, as consumers have long known it, is well and truly over.