Victoria’s Secret owner L Brands said Monday that it had called off a deal with private equity firm Sycamore Partners to take the retailer private, just three months after the two companies reached a $525 million agreement.
The transaction, announced in February, had been in doubt as Sycamore sought to exit the buyout by filing a lawsuit in Delaware accusing Victoria’s Secret owner, L Brands, of improperly operating the retail company amid the coronavirus pandemic.
In mid-March, L Brands temporarily closed its retail stores, including Victoria’s Secret and Bath and Body Works, because of the coronavirus pandemic. Sycamore Partners argued those changes were in violation of the transaction, according to the Wall Street Journal.
L Brands and Sycamore Partners came to an agreement to split control of Victoria’s Secret in February. The private equity firm would buy a 55% stake, while L Brands would retain control of the remaining 45%. Victoria’s Secret was set to be spun off into a fully private company.