End of an Era: Victoria’s Secret Brand Is Sold, and Revenue Funds Will Be Paid for Debts
Victoria’s Secret is going through difficult times. Amid allegations of discrimination and harassment of models, the brand announced the closure of its legendary show. Today it became known that the American holding L Brands will sell a controlling stake in the amount of 55% of the investment company Sycamore Partners. The funds received from the transaction are planned to be used to pay off the debt. L Brands owner Leslie Wexner, who has led the company for over 50 years, will leave the CEO and chairman of the board. Wexner will retain his post on the board of directors.
At the end of July the first information appeared that Victoria’s Secret will not be shown this year, model Shanina Shayk reported. Three months later representatives of the brand confirmed that the show was canceled. “The show was a very important part of brand building, its significant aspect, and outstanding marketing achievement. We are now figuring out how to take brand positioning to a new level and better communicate with customers,” said Stuart Burgdorfer, Executive Vice President of L Brands, which includes Victoria’s Secret, WWD.
Recently, Victoria’s Secret brand first invited transgender model Valentina Sampaio and the plus-size model Ali Tate Cutler. The brand is trying to be more inclusive and rethink its image.