// Victoria’s Secret & Co is selling a 49% stake in its China business to Hong Kong-based lingerie maker Regina Miracle International Ltd for $45 million
// The agreement between the two companies is expected to close in Q1 2022
Victoria’s Secret is selling a 49% stake in the company’s China business to Hong Kong’s lingerie company, Regina Miracle International, for $45 million in cash.
The deal is aimed at helping the retailer boost its sales in the Chinese market with the help of a local partner.
As part of the agreement, the two companies will form a joint venture, with Regina Miracle operating all Victoria’s Secret stores and related online business in China, according to Reuters.
READ MORE: Westfield sues Victoria’s Secret for $32m over unpaid rent
The agreement between the two companies is expected to close in Q1 2022, a year after Victoria’s Secret became an independent and publicly traded company, following its separation from Bath & Body Works.
In the U.S. market, the retailer is looking to revive its business by rethinking its creative direction and shuffling its executive team.
In December 2020, Victoria’s Secret hired Condé Nast’s Creative Director Raúl Martinez to lead its creative efforts. Meanwhile, Martin Waters was promoted to CEO after John Mehas stepped down.
With its global market share declining, the company has been forced to shutter hundreds of its store locations over the course of the pandemic, including its Hong Kong flagship store, as it has looked to improve liquidity and reduce operational costs.
The company has also sold majority stake of Victoria’s Secret U.K. business to Next Plc and has cut over $400 million in expenses by reducing corporate staff.
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