L Brands, owner of the Victoria’s Secret, Pink, Bath & Body Works stores, has inked a deal to sell its La Senza lingerie business to an affiliate of Regent LP, a global private equity firm.
The Columbus, Ohio-based company says the sale includes La Senza’s home office organisation, North American stores and e-commerce and international partnerships.
The company will sell 100% 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 monetisation of La Senza, as defined in the agreement. The company expects to complete the transaction and transfer ownership in January.
The move follows a statement sent to just-style in October in which L Brands confirmed it was weighing up options for La Senza as part of a wider bid to drive shareholder value and focus on its “larger core business”.
L Brands, which acquired the Canadian La Senza brand in 2007, said it estimated La Senza’s 2018 revenues and operating loss will be $250m and $40m respectively.