Private equity firm Sycamore Partners is looking to end its deal to buy a stake in L Brands, Inc. LB lingerie brand Victoria’s Secret.
L Brands said in a Wednesday statement that Sycamore Partners delivered a notice purporting to terminate the Feb. 20, 2020 transaction agreement relating to the sale of a 55% interest in Victoria's Secret Lingerie, Victoria's Secret Beauty and PINK.
Sycamore has filed a lawsuit in Delaware seeking a declaratory judgment in favor of the termination of the deal, according to L Brands.
The retailer views the attempted termination as invalid and said it plans to defend the lawsuit and pursue legal remedies.
"L Brands intends to continue working towards closing the transactions contemplated by the Transaction Agreement," the company said.
Sycamore said that L Brands' decisions to close American stores in march, furlough most workers and skip rent payments in April violated the terms of the proposed deal, The Wall Street Journal reported.
L Brands shares were trading lower by 15.51% at $10.19 at the close Wednesday.
The stock has a 52-week high of $28.02 and a 52-week low of $8.
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Photo by Samantha Marx via Wikimedia.
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