L Brands shifts its focus
L Brands is shrinking its store brands again.
The company announced that following its previously disclosed comprehensive review process, it has signed a definitive agreement to transfer ownership and operating control of La Senza – inclusive of the home office organization, North American stores and e-commerce and international partnerships – to an affiliate of Regent LP, a global private equity firm.
Although the financial terms have not been disclosed, the parent company of Victoria’s Secret will be selling 100 percent of its assets in La Senza in exchange for the buyer’s agreement to assume La Senza’s operating liabilities and to provide L Brands potential future consideration upon the sale or other monetization of La Senza, as defined in the agreement.
In September, L Brands announced it was looking for options for La Senza, along with plans to shut down Henri Bendel, which it acquired in 1985. All 23 Henri Bendel stores and its e-commerce website will go dark in January. The company said it was making the move as part of its ongoing effort to improve overall business performance and increase shareholder value by focusing on its core brands, which include Bath & Body Works and Victoria’s Secret.
The company expects to complete the transaction and transfer ownership in January.