L Brands has announced that it is selling its to sell its lingerie business La Senza to a private- equity firm called Regent LP in order to further slim down the number of brands under its umbrella.
The firm said that it has signed a definitive agreement to transfer ownership and operating control of 100% of La Senza’s assets including the home office organization, North American stores and e-commerce and international partnerships, to an affiliate of Regent LP.
The deal which is expected to be completed next month, will have Regent assuming La Senza’s liabilities.
However, the Columbus, Ohio-based retailer, which also owns Bath & Body Works, may get additional money in the event that Regent sells La Senza or finds other “monetization of” the brand.
The recent move comes as L Brands has taken other significant steps to change its business, including closing the handbag and accessories retailer Henri Bendel after the holiday season. The firm wants to focus on its bigger brands for now. Post this, L Brands will have the brands Victoria’s Secret, PINK and Bath & Body Works.
L Brands had bought La Senza for about US $ 700 million in early 2007 and has estimated that its 2018 revenues and operating loss will be approximately US $ 250 million and US $ 40 million or approximately 12 cents per share, respectively. There are 118 La Senza store in Canada and 11 in the US.