L Brands (Columbus, Ohio) announced that it plans to “spin off” Victoria’s Secret into its own publicly traded company, along with Bath & Body Works, by August.
Though it received interest from several potential buyers following the deal with Sycamore Partners (New York) that dissolved due to the Covid pandemic, the L Brands’ board decided separating the two companies would be a better way to get a higher valuation, CNBC reports. The company has said the split will allow each company to have better flexibility in terms of finances and each can focus on growth.
Analysts with JPMorgan and Citi valued Victoria’s Secret as a standalone business at roughly $5 billion.