// Victoria’s Secret to permanently shutter 250 stores in US and Canada
// L Brands CFO Stuart Burgdoerfer said the closures were a “very significant decision”
Victoria’s Secret has announced it will permanently close a quarter of its stores in North America over the next few months, after its half-billion dollar plan to go private collapsed.
The lingerie retailer’s parent company L Brands said it would close 250 branches and more may follow.
L Brands chief financial officer Stuart Burgdoerfer said the closures were a “very significant decision” but designed to “strengthen” Victoria’s Secret, CNN reported.
Victoria’s Secret was struggling prior to the coronavirus pandemic, but suffered a further blow when in May, L Brands called off a deal with private equity firm Sycamore Partners to take the retailer private.
It came just three months after it had reached a $525 million (£407 million) agreement.
Although L Brands ended the plans, Sycamore had launched legal action in pursuit of the same objective.
Sycamore argued that L Brands’ decision to shut shops and stop paying rent breached the terms of the deal.
In the first quarter, L Brands posted a loss of $296.9 million (£240 million) on sales down 37 per cent to $1.65 billion (£1.33 billion).
It remains uncertain whether L Brands plans on shuttering any of Victoria Secret’s UK stores.