Consumers stand in line as they look ahead to a Victoria's Secret retailer to open on Black Friday, on the Tysons Nook Middle, in Tysons, Virginia,
Consumers stand in line as they look ahead to a Victoria’s Secret retailer to open on Black Friday, on the Tysons Nook Middle, in Tysons, Virginia, November 27, 2020.
Hannah McKay | Reuters
L Manufacturers is again in sale talks with potential consumers for its Victoria’s Secret lingerie model, in accordance with a brand new report, the place it’s in search of probably greater than double the $1.1 billion valuation that it had roughly one yr in the past when a previous deal fell aside.
Hinging on Victoria’s Secret’s latest gross sales momentum, the corporate might now goal a valuation of not less than $2 billion to $three billion in a possible sale, Bloomberg reported Friday, citing individuals conversant in the non-public negotiations.
A consultant from L Manufacturers, which additionally owns Bathtub & Physique Works, didn’t instantly reply to CNBC’s request for remark.
Sycamore Companions sued L Manufacturers final April, to terminate a deal that may have given the non-public fairness agency 55% management of the lingerie chain, for round $525 million. It argued that L Manufacturers had violated the phrases of their settlement, when it didn’t pay hire and furloughed employees through the Covid pandemic. L Manufacturers averted a authorized battle by agreeing to name off the deal.
For the reason that holidays, L Manufacturers’ administration workforce has referred to as out rising momentum on the lingerie chain. The corporate has already boosted its revenue outlook for the primary quarter twice, citing heightened shopper demand at Victoria’s Secret.
It named Martin Waters as CEO of Victoria’s Secret final November, efficient instantly. He succeeded John Mehas, who had solely been within the position for about two years.
Former Chairman Les Wexner, who has been related to convicted intercourse offender Jeffrey Epstein, additionally gave up his chair seat in February 2020. Wexner and his spouse, who’re each on the corporate’s board, won’t be up for reelection at an upcoming annual shareholders assembly, both.
L Manufacturers has mentioned it anticipates finishing both a sale or a derivative of Victoria’s Secret by August.
L Manufacturers shares had been up greater than 1% on Friday morning. The inventory has risen over 75% yr thus far. The corporate has a market cap of greater than $18.5 billion.
Learn the complete report from Bloomberg right here.