L Brands’ Deal to Sell Victoria’s Secret Falls Through
Shares of L Brands are down once again after the deal with Sycamore Partners to buy Victoria’s Secret fell through. Sycamore Partners took L Brands to court to end the deal, arguing that L Brands had violated the terms of the agreement by closing its stores and skipping rent payments. Now the two companies have settled the litigation, and as far as Victoria’s Secret is concerned, L Brands is back where it started.
Shares of L Brands — which had tanked when the deal was originally announced in February, as Wall Street found the $1 billion valuation shockingly low — slumped again late Monday, falling more than 14 percent in after-market trades.