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Executives at L Brands have called off the sale of Victoria’s Secret to a private equity firm.

Back in February, bosses at the parent company of the U.S. lingerie giant reached an agreement with the team at Sycamore Partners to buy a majority stake.

The deal involved the firm acquiring a 55 per cent interest stake in the Victoria’s Secret lingerie, Victoria’s Secret Beauty, and Pink brands, which was valued at $1.1 billion.

However, leaders at Sycamore Partners began making moves to terminate the transaction last month due to the implications of the coronavirus pandemic, and on Monday, representatives from both companies announced that they had reached a “mutual agreement” to end the deal.

“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. We will continue to make decisions and take actions with the best interests of all our stakeholders and the future of our company in mind.”

In addition, a spokesperson announced that Leslie Wexner will step down as chief executive officer and chairman of the board of L Brands, though he will remain as chairman emeritus.

Andrew Meslow will succeed him as chief executive officer at L Brands, with Stuart Burgdoerfer to serve as interim boss at Victoria’s Secret.

Read more about Victoria’s Secret from our archive.

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