The private-equity company that agreed to buy the majority share of Victoria’s Secret from L Brands now wants to back out of the $525 million deal.
Sycamore Partners filed a lawsuit April 22 in the state of Delaware to terminate the agreement. In February, L Brands announced an agreement for Sycamore to purchase 55% interest in Victoria’s Secret Lingerie, Victoria’s Secret Beauty and PINK brands.
CNBC reports the lawsuit claims L Brands violated the deal by closing stores and skipping rent this month.
In March, the company shuttered all Bath & Body Works, Victoria’s Secret and PINK stores in the U.S. and Canada due to the coronavirus pandemic. About 80,000 workers were affected.
"L Brands will vigorously defend the lawsuit and pursue all legal remedies to enforce its contractual rights, including the right of specific performance," the company said in an emailed statement. "L Brands intends to continue working towards closing the transactions contemplated by the Transaction Agreement."
Les Wexner, founder and CEO of L Brands, retired earlier this year.
